The joint venture is given a name- “CENTRE Consortium”. It aims to speed up the adoption of cryptocurrencies backed by the government like the U.S. Dollar. Circle Co-founders, Jeremy Allaire, and Sean Neville say,
Coinbase and Circle share a common vision of an open global financial system. Basically, build on crypto rails and blockchain infrastructure. Realizing this vision requires industry leaders to collaborate to build interoperable protocols and standards.
Circle develops its own US dollar cryptocurrency- the stablecoin USDC and has made many partnerships since then. As of Tuesday, the USDC will trade on Coinbase’s platform.
This is the first time Coinbase supports a stablecoin. Coinbase says it is “fundamentally different” from other cryptocurrencies. They also say in a blog post,
We see USDC as a major step towards a more open financial system. The advantage of a blockchain-based digital dollar – like USDC – is that it is easier to program, send, use in apps, and store locally than traditional US dollars.
Circle CEO Jeremy Allaire has made many long bets on the crypto/blockchain space, and USD coin is one among them. He believes Bitcoin will not be the medium through which trades and investments take place. So investors will believe in government-backed money, and that they were laying the groundwork with this partnership for the future to come.
The CEO further explains saying, USDC is not meant to replace the actual USD but to make it compatible with crypto infrastructure, which is obviously better and efficient. With the speculations and rumors regarding Tether and not actually being pegged to the USD has caused unrest in the crypto community hence making way for other stablecoins to take its place.