On Monday, Coinbase and Circle, the two companies behind USD Coin, settled on new terms that would change the governance and funding of USDC, including Coinbase taking an equity stake in Circle for the first time, and the two firms shuttering the Centre Consortium, which previously governed the stablecoin.
The updated agreement reflects the shifting economics and popularity of USDC, especially as it faces an uncertain global regulatory environment and competition from other stablecoins, including offshore rival Tether and the newly announced PayPal stablecoin. As part of the initiative, Circle plans to launch USDC on six new chains in the coming months to help increase adoption, although the company declined to provide specifics.
