Ethereum

Base

USDC

<a href="https://www.coinbase.com/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Coinbase</a>, a leading cryptocurrency exchange, has announced a strategic shift in the management of its USD Coin (USDC) stablecoin accounts, signaling a significant move towards utilizing its Ethereum layer-2 blockchain, Base.
The transition, disclosed by Coinbase vice president Max Branzburg via a post on the social platform X on March 26, is designed to enhance the exchange’s capability to manage and secure customer funds with “lower fees and faster settlement times.”
This adjustment specifically affects Coinbase.com accounts, with Coinbase Wallet accounts remaining unaffected due to users’ control over their private keys.
Currently, the platform secures user tokens through multiparty computation technology.
Highlighting the company’s strict policy on asset management, Branzburg emphasized that Coinbase maintains a 1:1 holding of customer assets and refrains from lending funds without explicit authorization from the customers.
This move is not just a logistical change; it represents a step towards the realization of an on-chain financial ecosystem.
David Hoffman, a co-host of the Ethereum-centric Bankless show, noted this transition as a pivotal moment towards achieving such a future.
READ MORE: <a href="https://www.cryptointelligence.co.uk/ark-invest-sells-off-31-5-million-in-robinhood-shares-amid-crypto-friendly-brokers-stock-surge/" data-wpel-link="internal" rel="noopener noreferrer nofollow">ARK Invest Sells Off $31.5 Million in Robinhood Shares Amid Crypto-Friendly Broker’s Stock Surge</a>
Additionally, Ryan Sean Adams, another Bankless co-host, views this development as setting a standard for other cryptocurrency exchanges and banks, suggesting a future where every asset is tokenized and every bank operates on a blockchain.
Despite the optimism, some skepticism exists around the degree of decentralization of Base, with concerns raised over its current state of centralization, given Coinbase’s role as the sole sequencer.
However, Coinbase has expressed plans to gradually decentralize Base, reinforcing this intent by open-sourcing Base’s code in October for greater transparency and community involvement.
Launched on August 9, 2023, Base serves as an Ethereum scaling solution employing optimistic rollups for efficient off-chain transaction data storage.
It ranks as the fourth-largest Ethereum layer 2 by total value locked, boasting $2.63 billion, and recently achieved a record of 2 million daily transactions, indicating growing user engagement.
This strategic shift by Coinbase not only aims to enhance transaction efficiency and security but also signifies a broader move towards an on-chain financial infrastructure, setting a precedent for the industry at large.
To submit a <a href="https://www.cryptointelligence.co.uk/category/press-releases/" data-wpel-link="internal" rel="noopener noreferrer nofollow">crypto press release (PR)</a>, send an email to <a href="mailto:sales@cryptointelligence.co.uk" rel="noopener noreferrer nofollow">sales@cryptointelligence.co.uk</a>.

Coinbase Advances Crypto Industry by Integrating USDC Accounts with Ethereum’s Layer-2 Blockchain Base

Crypto Intelligence

Other articles published on Mar 28, 2024

Deribit to Close Record-Breaking Crypto Options Amid Market Impact Expectations

These Cryptos Will Make You Filthy Rich On This Bull Run

What Is an ERC-20 Token And How Can You Create One?

Bitcoin, Ethereum Take A Breather While Dogecoin Spike Pushes Crypto Market Cap Above $2.6 Trilli...

Mantle’s Meteoric Rise in the Crypto Market

Are Old Bitcoin Whales Selling Or Mitigating Risks Using Spot BTC ETFs?

Join our free newsletter for daily crypto updates!