Circle and Coinbase to dissolve Centre; USDC will remain fully available

Aug. 22, 2023

By Mike Dalton

The stablecoin will be introduced to six more blockchains this fall.

Coinbase and Circle said in a blog post on Aug. 21 that Centre — the consortium originally responsible for the USDC stablecoin — will be dissolved.

The two companies said that Centre will end its operations due to changing regulatory conditions. They said that Centre was originally intended to serve as a joint, self-managed governance body for USDC and explained that this is no longer necessary thanks to clearer stablecoin regulations in the U.S. and globally.

Coinbase and Circle said that USDC will instead be governed and operated in-house by Circle going forward. They said that this approach will streamline operations and governance, as Circle will issue USDC, hold smart contract keys, and work to comply with regulations around reserve governance and additions on new blockchains.

The change will also see Coinbase take an equity stake in Circle. The companies said that the investment will allow the companies to have a “greater strategic and economic alignment” and that they will maintain a commercial relationship.

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