Coinbase has announced plans to increase the storage of corporate and customer USDC balances on Base, an Ethereum Layer 2 solution built on the open-source OP Stack. This move is intended to provide benefits such as lower fees, faster settlement times, and enhanced security for managing customer funds. Max Branzburg, Coinbase’s Vice President and Head of Consumer Products, stated that this shift will enable the company to manage and secure customer funds with lower fees and faster settlement times, without impacting the user experience on the platform. He also encouraged other companies to follow Coinbase’s lead in moving their business onchain. The announcement has been well-received by the community, with individuals like Jesse Pollak expressing support and excitement for Coinbase’s decision to transition to using Base for USDC reserves.
Base, the Ethereum Layer 2 solution, has seen a substantial increase in total value locked (TVL) recently. Data from Defi Llama shows that user deposits on Base have surpassed $1 billion, more than doubling since the beginning of the month when it recorded $470 million onchain. The surge in TVL on Base can be attributed to decentralized exchange Aerodrome, which has contributed the majority of the locked value since its significant growth started in early February. Transaction counts on Base have also experienced significant growth, surpassing other optimistic rollups in terms of increase. While Arbitrum and OP Mainnet have also seen increases in transaction counts, OP Mainnet has had a more modest daily transaction count compared to Base.
Coinbase’s decision to increase USDC reserves on Base coincides with Circle’s announcement that they will no longer create USDC tokens on the Tron blockchain. Circle stated that this decision was made to ensure the transparency, trustworthiness, and safety of USDC. Binance has also revealed that they will no longer facilitate deposits and withdrawals of USDC on the Tron blockchain network, although users will still be able to trade the cryptocurrency on their platform. The majority of USDC tokens in circulation are based on the Ethereum blockchain, with a circulation of approximately $32.1 billion. USDC currently stands as the eighth-largest cryptocurrency and the second-largest stablecoin, after Tether.
The move to increase USDC reserves on Base is expected to provide several advantages, including lower fees, faster settlement times, and enhanced security for managing customer funds. The community has shown support and excitement for Coinbase’s decision, with individuals like Jesse Pollak expressing their commitment to continuing to support Coinbase in their onchain endeavors. The surge in total value locked on Base, surpassing $1 billion in user deposits, reflects a significant growth trend, with contributions from decentralized exchange Aerodrome and notable increases in transaction counts compared to other optimistic rollups. Circle’s decision to halt the creation of USDC tokens on the Tron blockchain, citing the need for transparency, trustworthiness, and safety, aligns with Coinbase’s move to increase USDC reserves on Base. Binance has also announced that they will no longer facilitate deposits and withdrawals of USDC on the Tron blockchain network, while ensuring that users can still trade the cryptocurrency on their platform. The majority of USDC tokens in circulation are currently based on the Ethereum blockchain, emphasizing the importance of supporting secure and reliable blockchain networks for stablecoin transactions.
