David

Base

USDC

Optimism

Coin

Coinbase will start moving more of its customer and corporate USD Coin <a href="https://cointelegraph.com/usdc-price-index" rel="noopener noreferrer nofollow">(USDC)</a> stablecoin accounts to Base — its Ethereum layer-2 blockchain launched a little over seven months ago.
Coinbase vice president Max Branzburg <a href="https://x.com/maxbranzburg/status/1772716138499039612" target="_blank" rel="noopener noreferrer nofollow">posted</a> to X on March 26 claiming the move would allow the crypto exchange to “manage and secure customer funds with lower fees and faster settlement times.”
The change only impacts Coinbase.com accounts — not Coinbase Wallet, as those users are responsible for their own private keys.
Currently, Coinbase.com user tokens are custodied by Coinbase in a wallet secured by multiparty computation.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-03/fab0c634-6884-436e-b12e-4f2b6d22232c.png">
 <figcaption style="text-align: center;">Source: <a href="https://x.com/maxbranzburg/status/1772716138499039612?s=20" target="_blank" rel="noopener noreferrer nofollow">Max Branzburg</a>
 </figcaption>
</figure>
Branzburg stressed that Coinbase always holds customer assets 1:1 and doesn’t lend funds out unless instructed.
Coinbase’s move on-chain will carve a path toward a future on-chain financial system, <a href="https://x.com/TrustlessState/status/1772736730623332673" target="_blank" rel="noopener noreferrer nofollow">explained </a>David Hoffman, a co-host on the Ethereum-focused show Bankless in a March 26 X post.
Bankless co-host, Ryan Sean Adams, <a href="https://x.com/RyanSAdams/status/1772734990733771244" target="_blank" rel="noopener noreferrer nofollow">believed</a> the move would also set a precedent for cryptocurrency exchanges and banks to follow suit.
“Every asset is a future token [...] Every bank is a future chain," Sean Adams added.
Not everyone is on board with the move, though.
X user “callmeKappa.algo” <a href="https://x.com/Jacopokpp/status/1772724012042301730" target="_blank" rel="noopener noreferrer nofollow">suggested</a> Base is too centralized in its current state.
Related: <a href="https://cointelegraph.com/news/coinbase-network-base-tvl-doubles-month-memecoins-drive-adoption" rel="noopener noreferrer nofollow">Base TVL doubles in a month as pundits tip memecoins to drive adoption</a>
Coinbase is currently the sole sequencer of Base, according to L2BEAT <a href="https://l2beat.com/scaling/projects/base?selectedChart=activity" target="_blank" rel="noopener noreferrer nofollow">data</a> — meaning the chain is fully controlled by the exchange.
However, the firm has iterated its intention to <a href="https://cointelegraph.com/learn/what-is-base-coinbase-l2-network" rel="noopener noreferrer nofollow">progressively decentralize Base over time.</a>
Base was <a href="https://cointelegraph.com/news/coinbase-base-network-officially-launched-heres-how-it-can-be-used" rel="noopener noreferrer nofollow">launched as an Ethereum scaling solution</a> on Aug. 9, 2023. It uses optimistic rollups to store transaction data off-chain and submit transactions to Ethereum’s base layer.
Coinbase also <a href="https://cointelegraph.com/news/coinbase-layer-2-network-base-open-source-code" rel="noopener noreferrer nofollow">open-sourced Base's code</a> in October to increase transparency and accountability while simultaneously allowing public contributions to the project.
It is currently the fourth largest Ethereum layer 2 by total value locked at $2.63 billion, trailing only Arbitrum, Optimism and Blast, <a href="https://l2beat.com/scaling/summary" target="_blank" rel="noopener noreferrer nofollow">according</a> to L2BEAT.
Base notched an all-time high of&nbsp;<a href="https://cointelegraph.com/news/base-daily-transactions-skyrocket-after-ethereum-dencun-upgrade" rel="noopener noreferrer nofollow">2 million daily transactions</a> on March 16 as figures for daily new users also continue to rise.
Magazine: <a href="https://cointelegraph.com/magazine/3ac-kyle-davies-brit-launders-6b-btc-fast-food-worker-asia-express/" rel="noopener noreferrer nofollow">‘Am I sorry? No’ — 3AC founder. $6B BTC laundered for fast food worker: Asia Express</a>

Coinbase to move customer and corporate USDC balances to Base

Cointelegraph

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