Coinbase and Circle Join Forces
October 25, 2018 1:47 pm
The cryptocurrency giants Coinbase and Circle are officially collaborating in a joint venture. This has been done to boost the adoption of digital coins that are backed by the US dollar. Circle and Coinbase are valued at $4 billion and $8 billion respectively. They are two of the most funded and well-known cryptocurrencies in the world.
The joint venture has been named as the “CENTRE Consortium”. It is aimed at establishing a standard for listing fiat currencies digitally.
The companies talked about “USD Coin”, a stablecoin that is pegged to the US dollar in 1:1 ratio was launched on Coinbase’s trading exchange this past Tuesday.
“Coinbase and Circle share a common vision of an open global financial system built on crypto rails and blockchain infrastructure, and realizing this vision requires industry leaders to collaborate to built interoperable protocols and standards.”
The stablecoin known as USD Coin was launched by Circle back in May. The company is valued at $3 billion in the most recent funding round. Even though the Bitcoin prices continue to drop, Circle has announced deals, partnerships with various companies.
USD Coin was created to represent a single U.S. dollar. It is built on Ethereum’s blockchain.
Coinbase said in a blog post
“We see USDC as a major step towards a more open financial system. The advantage of a blockchain-based digital dollar- like USDC- is that it is easier to program, send, use in apps, and store locally than traditional US dollars.”
Jeremy Allaire said
“If people can exchange value over the internet without a toll extracted fo payments it’s pretty dramatic. It’ll make the web look like a cute experiment comparatively speaking in 10 to 15 years.”