A major cryptocurrency exchange, Coinbase, is expanding its Layer-2 protocol Base Network to include storage for users’ USDC balances.
This move, announced by Max Branzburg, Coinbase’s Vice President of Consumer Products, aims to enhance fund management and security by storing more corporate and customer USDC balances on Base, while also reducing fees and speeding up settlement times.
This decision follows Coinbase’s partnership with Compass Coffee, promoting USDC payments. Coinbase hopes other companies will follow suit in adopting USDC storage. They assure users that funds remain secure, with no lending activities unless requested.
However, customers should note increased transaction fees due to Base Network congestion. Coinbase currently holds $220.7 million USDC, with most on Ethereum. Shifting USDC to Base could impact the network but won’t significantly affect USDC’s broader distribution on Ethereum.
Previously involved in USDC governance, Coinbase now collaborates with Circle after CENTRE’s dissolution in 2023. This move showcases Coinbase’s strategic shift towards enhancing its protocol’s functionality and promoting USDC adoption.
Coinbase’s upgrade to Base Network highlights its commitment to improving services and promoting USDC usage, aiming for a seamless user experience while addressing network challenges.
Also Read: Coinbase Base Network Hits $2.5B TVL with Dencun Upgrade
