Coinbase Acquires Circle Equity Shares Following Closing of Centre Consortium

Coinbase Takes an Equity Stake in Circle Following the Shut Down of Centre Consortium
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Coinbase and Circle have recently revamped their existing relationship as revealed in the blogs shared by both platforms. The two organizations joined hands on the launch of the USDC stablecoin and have governed the Centre Consortium. As per the blog, the Centre Consortium would soon cease to exist as a standalone entity, and all governance tokens would be managed in-house. Furthermore, Circle would now have increased responsibilities that include holding smart contract keys as well as regulatory compliance.

It was highlighted how Coinbase and Circle came to the conclusion that a body like Centre Consortium was no longer needed as regulatory clarity continues to grow. The co-founder of Circle, Jeremy Allaire, stated that the two platforms are looking forward to enhancing and deepening their commercial relationship, with Coinbase taking equity in Circle. The latest development would drastically boost the firms’ strategic and economic alignment. Similarly, all interest revenue would continue to be shared between the firms, but it would be based on their overall holdings of the stablecoin.

Circle and Coinbase launched USDC together all the way back in 2018, and the stablecoin has established itself as the second largest with a market cap of $26 million. Furthermore, the blog post also announced that USDC would be launched on a total of six new blockchains in September and October this year. However, the new blockchains were not exactly specified but the stablecoin’s expansion on Polkadot, Optimism, Near, and Arbitrum was announced in September.

Coinbase Raises Offer on its Debt Buyback Program

In other news, Coinbase has pumped up the offer on its $150 million debt buyback program following a lukewarm demand. The buyback program went into effect earlier this month but investors tendered bonds a little above $50 million in comparison to expected $150 million. Coinbase raised its offer on 3.625% senior notes due in 2031 from 64.5 cents on the dollar to 67.5 cents on the dollar.

An estimated $1 million of the 3.625% senior notes due in 2031 were issued back in September 2021, not too long before the start of the bear market. The notes declined to an all-time low of approximately 47 cents on the dollar in December 2022, and the CEO of the exchange warned that the platform might face a 50% decline in its revenue. However, the price has since recovered to 64.5 on the dollar.


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