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 Neither the author, Ruholamin Haqshanas, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
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<p class="has-drop-cap">USD Coin (USDC) will be <a aria-label="supported by 6 new blockchains (opens in a new tab)" href="https://www.coinbase.com/blog/ushering-in-the-next-chapter-for-usdc" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">supported by six new blockchains</a> in the coming months, bringing the stablecoin’s multi-chain access up to fifteen. Further, Coinbase, one of the founding members of the self-governance consortium for USDC, will buy a minority equity stake in the coin’s issuer, Circle.&nbsp;&nbsp;</p> 
<h3 id="circle-to-handle-all-usdc-governance-responsibilities">Circle to Handle All USDC Governance Responsibilities</h3> 
<p>USDC, the second-largest stablecoin in the world, will be launched on six new blockchains between September and October, Coinbase announced on Monday.&nbsp;</p> 
<blockquote class="wp-block-quote"> 
 <p>“USDC will be launching on 6 new blockchains between September and October, bringing the multi-chain access of USDC up to 15 to continue accelerating USDC’s momentum with developers around the world.”</p> <cite>– Coinbase wrote in the blog post.</cite>
</blockquote> 
<p>The move comes as Coinbase acquires a minority stake in USDC issuer Circle Internet Financial, reinforcing the strategic partnership between the two companies. At the same time, the companies are dissolving their <a href="https://www.circle.com/blog/coinbase-and-circle-co-found-the-centre-consortium" target="_blank" aria-label="Centre Consortium (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">Centre Consortium</a> alliance that had launched the USDC in 2018, citing growing regulatory clarity for stablecoins around the world.</p> 
<p>As a result, the breakup of the Centre will significantly modify the USDC’s governance process. Rather than entrusting the stablecoin’s governance to a separate body, all management and operational responsibilities will now be handled by Circle.&nbsp;</p> 
<blockquote class="wp-block-quote"> 
 <p>“This change aims to simplify operations, make Circle directly accountable as the issuer, and enable USDC on new blockchains while complying with reserve governance regulations.”</p> <cite>– Coinbase added.</cite>
</blockquote> 
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<h3 id="usdc-losing-market-share">USDC Losing Market Share</h3> 
<p>The latest developments come on the back of a challenging year for USDC. Although it remains the second-biggest stablecoin by valuation, USDC has lost its market share to <a href="https://tokenist.com/usdts-market-cap-hits-new-ath-at-83-25b-while-other-stablecoins-shrink/" rel="dofollow" class="deco-link">Tether’s USDT</a>.</p> 
<p>From the start of 2023 to July 31, USDT’s dominance <a href="https://twitter.com/ali_charts/status/1685566649389506560?s=20" target="_blank" aria-label="increased from 49.48% to 68.87% (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">increased from 49.48% to 68.87%</a>, while USDC’s market share declined from 33.27% to 21.91%. Binance USD (BUSD) saw its market share decline rapidly from 12.36% to 3.13% during the period due to US regulators’ decision to <a href="https://tokenist.com/busd-issuer-ordered-to-stop-minting-new-tokens-report/" rel="dofollow" class="deco-link">halt the issuance</a> of more BUSD coins.</p> 
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  <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
   <p lang="en" dir="ltr">Stablecoins have seen a drastic change in market share year-to-date:<a href="https://twitter.com/search?q=%24USDT&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">$USDT</a> went from 49.48% to 68.87% <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f4c8.png" alt="📈" class="wp-smiley" style="height: 1em; max-height: 1em;"><a href="https://twitter.com/search?q=%24USDC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">$USDC</a> went from 33.27% to 21.91% <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f4c9.png" alt="📉" class="wp-smiley" style="height: 1em; max-height: 1em;"><a href="https://twitter.com/search?q=%24BUSD&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">$BUSD</a> went from 12.36% to 3.13% <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f4c9.png" alt="📉" class="wp-smiley" style="height: 1em; max-height: 1em;"><a href="https://twitter.com/search?q=%24DAI&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">$DAI</a> went from 4.29% to 3.76% <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f4c9.png" alt="📉" class="wp-smiley" style="height: 1em; max-height: 1em;"><a href="https://twitter.com/search?q=%24TUSD&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">$TUSD</a> went from 0.56% to 2.31% <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f4c8.png" alt="📈" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/Rkz4NL5dsE" target="_blank" rel="nofollow">pic.twitter.com/Rkz4NL5dsE</a></p>— Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1685566649389506560?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">July 30, 2023</a>
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<p>In the meantime, payments giant <a href="https://tokenist.com/paypal-to-launch-stablecoin-backed-by-us-dollar-deposits-and-t-bills/" rel="dofollow" class="deco-link">PayPal forayed</a> into the stablecoin market, launching its asset backed by dollar deposits and Treasury bills. The stablecoin, dubbed PayPal USD (PYUSD), is issued by Paxos, the same blockchain infrastructure firm that used to issue BUSD.&nbsp;</p> 
<p>The global stablecoin market is <a href="https://tokenist.com/stablecoin-marketcap-expected-to-grow-2140-in-5-years-as-paypal-enters/" rel="dofollow" class="deco-link">expected to witness a substantial growth rate of 2,140%</a> over the following 5 years and hit $2.8 trillion in valuation.&nbsp;</p> 
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<p><em><strong>Do you think Coinbase’s investment and new governance process will help USDC regain its market share? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/usdc-to-be-launched-on-six-new-blockchains-as-coinbase-invests-in-circle/">USDC to be Launched on Six New Blockchains as Coinbase Invests in Circle</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

USDC to be Launched on Six New Blockchains as Coinbase Invests in Circle

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