Coinbase discloses plans to move over $200 million USDC holdings belonging to individuals and enterprises to its Base network.
Taking to X, Max Branzburg, the Vice President and Head of Consumer Products at Coinbase, broke the news to his over 8K followers.
Interestingly, the new development is coming a few days after we reported that Binance plans to halt support for USDC on the Tron network.
New Plan Aims To Improve User Experience
According to the vice president's tweet, the new initiative aims to enhance how the exchange manages users' funds by incorporating lower charges and faster settlement times while user experience remains unaffected.
Going further, Branzburg assured users about the safety of their assets on the exchange. In his exact wordings, he wrote, "We will never repurpose your funds. We do not lend or take any action with your assets unless you specifically instruct us to."
Coinbase's Base Network Overview
The Base network on Coinbase was launched on August 23, 2023, as an Ethereum Scaling solution. Since its release, the trading platform has been the sole controller of the network.
Despite being on board for less than a year, Base has been impressive. Per the network's statistics on L2beat, Base boasts a Total Volume Locked (TVL) worth about $2.83B with a daily transaction per second (TPS) of 18.32 and a 30-day transaction counts of 25.17 million.
Impact on Coinbase
While this reallocation represents a significant portion of Coinbase's reserves, the impact on the broader Ethereum ecosystem is expected to be minimal. Ethereum's robust USDC reserves dwarf those of the individual trading platform, ensuring that market stability is preserved despite the internal reshuffling at Coinbase.
This move by Coinbase is indicative of an ongoing strategy to optimize the efficiency and scalability of its operations by leveraging Base. The implications for Coinbase's internal asset distribution are yet to be fully realized, but the company has taken steps to mitigate any potential disturbances within its operations.
