Circle CEO Jeremy Allaire and Coinbase CEO Brian Armstrong have issued a joint statement to change the USDC stablecoin governance scheme.
As part of the new agreement, Coinbase is acquiring a stake in Circle, which in turn will take over the issuance and management of USDC.
The Center consortium, which previously coordinated the issuance and management of the stablecoin, will be disbanded.
Circle will become the sole issuer of USDC, while Coinbase will receive a stake in the issuing company.
The parties did not inform the public about the details of the new agreement, limiting themselves to stating that the interest income received as a result of holding USDC reserves will be divided fairly.
“As part of the new agreement between the parties, this income will continue to be distributed based on the amount of USDC held on each of our platforms.
In addition, we will now equally share interest income generated from the distribution and wider use of USDC,” the statement said.
Earlier, the CEO of Circle revealed that adoption of the USDC stablecoin is happening mostly outside of the US.
According to him, about 70% of USDC is used in Asia, Latin America and Africa, where there is an increased demand for secure and transparent payments.