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Coinbase has revealed intentions to enhance the storage of corporate and customer USDC holdings on Base, an Ethereum Layer 2 solution developed by the exchange and constructed on the open-source OP Stack.
This initiative is anticipated to yield advantages such as reduced fees, quicker settlement times, and improved security for the management of customer assets.
Max Branzburg, Coinbase’s Vice President and Head of Consumer Products, shared this decision in a post on X on Wednesday.
“This allows us to manage and secure customer assets with lower fees and faster settlement times, without affecting the Coinbase user experience,” he stated.
He also urged other companies to emulate Coinbase’s approach by transitioning their operations onchain.
Community Backs Initiative to Boost USDC Reserves on Base
The announcement has received a favorable response, with Jesse Pollak, a contributor to Base, expressing enthusiasm and support for Coinbase’s shift.
Pollak characterized the move as “based” and committed to continuing support for Coinbase in their onchain initiatives.
based
excited to keep supporting @coinbase moving onchain
— Jesse Pollak (jesse.xyz)
(@jessepollak) March 26, 2024
Base, the Ethereum Layer 2 solution, has seen a remarkable increase in total value locked (TVL).
As per data from Defi Llama, user deposits on Base have exceeded $1 billion.
This marks a substantial rise, as the TVL has more than doubled since the start of the month when it recorded $470 million onchain.
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The increase in Base’s TVL can be linked to decentralized exchange Aerodrome, which has accounted for the majority of the locked value since its significant growth began in early February.
Transaction volumes on Base have experienced a significant rise, outpacing other optimistic rollups in terms of growth.
While Arbitrum has also seen an increase in transaction counts, OP Mainnet has recorded a more modest rise in its daily transaction numbers.
USDC on Tron Approaching Conclusion
Coinbase’s choice to boost USDC reserves on Base coincides with Boston-based crypto firm Circle’s announcement to cease the issuance of USDC tokens on the Tron blockchain.
Circle pointed to the necessity of ensuring the transparency, reliability, and safety of USDC as the rationale behind their decision.
“Our choice to stop supporting USDC on TRON is the outcome of a company-wide strategy that involved various departments, including business organization, compliance, and others,” the company stated on X.
Recently, Binance has also disclosed that it will no longer support deposits and withdrawals of USDC via the Tron blockchain network.
Binance clarified that users will still be able to trade USDC on their platform.
Moreover, deposits and withdrawals of USDC through other supported networks will remain unaffected.
With a circulation of around $32.1 billion, USDC is currently the eighth-largest cryptocurrency and the second-largest stablecoin following Tether.
According to Circle’s website, the majority of USDC tokens in circulation are based on the Ethereum blockchain.
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