- Crypto exchange Coinbase has announced that it’s advancing its storage strategy for corporate and customer USD Coin (USDC) by using Base.
- The move highlights Coinbase’s commitment to improving services. And also promoting USDC to achieve a seamless user experience while addressing network challenges
Coinbase Advancing its Storage Strategy to Base
Crypto exchange Coinbase will store more corporate and customer USD Coin (USDC) balances on Base. Its a layer-2 solution that is based on the OP Stack, invented by the exchange.
Notably, Coinbase is shifting its focus to Base from Ethereum (ETH), citing that the move would not affect user experience.
The shift will result in lower transaction fees and fast settlement times. Interestingly, Coinbase has yet to be clear whether it plans to transfer all its funds in USDC to Base.
More importantly, the date the crypto exchange intends to allocate assets on its network is also not clear.
Max Branzburg, the Vic0e President at Coinbase, expressed his enthusiasm for the ongoing shift. And has encouraged other firms to embrace blockchain technology as Coinbase has done.
Based. Excited to keep supporting Coinbase moving on-chain.
Jesse Pollak, Base contributor, reacted to the announcement.
Overall, the Coinbase community has been optimistic about the news. Many users have expressed eagerness to continue to support the integration.
Base’s Notable Growth in Total Value Locked (TVL)
Arkham Intelligence data shows Coinbase holds only 1% of its assets on Base. Bitcoin network accounts for over 70%, whereas Ethereum accounts for roughly 30%.
Evidently, Coinbase has only five tokens on Base, with a total value of $45.8 million. Among the five tokens, the tokenized version of USDC is dominant, representing over $37.3 million.
In any case, the exact figure needs to be clarified since the crypto exchange doesn’t disclose its addresses publicly.
The announcement comes after Base hit a significant milestone. Base’s total value locked (TVL) has surpassed the $1 billion mark.
DefiLlama data reports a rapid increase in liquidity in the Base network in Feb 2024. Its value soared from roughly $400 million to over $1 billion in the same month.
Base significant growth is attributed to Aerodrome, a decentralized exchange that has witnessed a substantial increase in activity.
The aerodrome is responsible for approximately $507 million of the Base’s total value locked (TVL).
Remarkably, Base has an edge over other optimistic rollup solutions, outperforming them in terms of growth in transaction volume.
Coinbase Commitment to Improving Services
The leading crypto exchange in the US, Coinbase, launched Base as a layer 2 scalability solution in Aug 2023.
The blockchain innovation is aimed at allowing the adoption of large-scale decentralized applications.
In Nov. 2023, the crypto exchange launched a new open-source on-chain payment protocol. The move aimed to improve the exchange’s commerce product for merchants.
It intended to enable instant settlement, lower fees, and broader asset support for merchants using its services.
Coinbase shifting to the Base network reflects its commitment to improving services. More importantly, promoting USDC usage, aiming for a seamless user experience and tackling network challenges.
Do you think Coinbase will successfully transfer all its USDC balances into Base?
Suchet Salvesen
Suchet is a Norwegian economist, entrepreneur, and investor, serving as the CFO and COO of Brainfund. With over a decade of experience in global expansion, venture capital, and emerging technologies, he earned his MBA from the NMBU School of Business & Economics. He held dual bachelor's degrees from the University of South-Eastern Norway. His career spans roles at NextToMe, Get, and Conax before joining Everipedia, now Brainfund, in 2017.
