In a significant move ahead of its planned public listing, Circle, the issuer of the USDC stablecoin, has disclosed in its S-1 IPO filing that it acquired Coinbase’s 50% stake in the Centre Consortium for $209.9 million in stock in 2023. This transaction marks a pivotal shift in the governance and control of USDC, transitioning it from a jointly managed project to a Circle-controlled digital asset.
The acquisition finalizes the dissolution of Centre, the joint venture originally formed by Circle and Coinbase in 2018 to standardize the issuance and regulation of USDC. While Coinbase had previously announced its exit from Centre in August 2023, the financial details remained undisclosed—until now.
The End of Centre: USDC Enters a New Era of Centralized Control
Founded in 2018, Centre Consortium was established as a governance framework to oversee the issuance, compliance, and interoperability of USDC across blockchain networks. For years, both Circle and Coinbase shared equal ownership and decision-making authority over the stablecoin’s standards.
However, with the completion of this $209.9 million deal—equating to approximately 8.4 million shares of Circle common stock—Centre officially became an indirect, wholly-owned subsidiary of Circle. By December 2023, the entity was formally dissolved, and its assets were integrated into another Circle subsidiary.
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This structural shift consolidates full technological, operational, and regulatory control of USDC under Circle. It empowers the company to independently shape USDC’s future development, compliance strategies, and global expansion—critical advantages as it prepares for life as a publicly traded company on the New York Stock Exchange under ticker “CRCL”.
Revenue Sharing Keeps Coinbase Tied to USDC Success
Despite exiting Centre, Coinbase remains deeply financially linked to USDC through an ongoing revenue-sharing agreement. According to the S-1 filing, Coinbase is entitled to 50% of the net income generated from USDC’s reserve assets—primarily derived from holdings in short-term U.S. Treasuries and cash equivalents.
Crucially, this revenue share is proportional to the amount of USDC held on Coinbase’s platform. In practical terms:
- The more USDC circulating within Coinbase’s ecosystem, the higher its cut of reserve earnings.
- If users shift USDC usage to other exchanges or self-custody wallets, Coinbase’s share decreases.
This incentive structure reinforces Coinbase’s role as one of USDC’s primary distribution channels. Data from the filing shows that 20% of all circulating USDC was held on Coinbase as of 2024—up sharply from just 5% two years prior—highlighting its growing dominance in stablecoin liquidity.
Strategic Dependencies and Emerging Risks
While mutually beneficial, this arrangement introduces a key strategic dependency that Circle explicitly identifies as a business risk in its IPO documents. The company acknowledges that:
“Changes in Coinbase’s platform policies, user experience, or competitive positioning could materially affect USDC adoption and our financial performance.”
Because Circle cannot control how Coinbase manages its interface, fees, or promotional efforts around USDC, any negative shift could reduce demand and, by extension, Circle’s reserve income.
To mitigate this reliance, Circle is actively pursuing a global diversification strategy, aiming to expand USDC adoption beyond major crypto exchanges and into mainstream financial ecosystems.
Expanding Beyond Crypto: Circle’s Global Ambitions
Circle is no longer positioning itself merely as a stablecoin issuer—it aims to become a foundational layer of global digital finance infrastructure. To that end, it has forged strategic partnerships with major non-custodial and fintech platforms worldwide:
- Grab – The Singapore-based super app integrating USDC for cross-border payments across Southeast Asia.
- Nubank – Brazil’s largest digital bank leveraging USDC for low-cost remittances and financial inclusion.
- Mercado Libre – Latin America’s leading e-commerce platform exploring USDC for merchant settlements and customer transactions.
These collaborations underscore a broader vision: transitioning USDC from a speculative crypto asset into a real-world payment instrument embedded in everyday financial activity—from ride-hailing apps to online marketplaces.
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This push aligns with increasing regulatory clarity around digital assets in key markets like Singapore, Brazil, and the European Union—regions where Circle sees significant growth potential for compliant, transparent stablecoins.
Financial Health and Competitive Landscape
As it heads toward IPO, Circle presents strong financials. In 2024, it reported:
- $1.7 billion in total revenue and reserve income
- $156 million in net profit
These figures reflect the profitability of its reserve investment model amid sustained high interest rates—a stark contrast to earlier years when stablecoin issuers struggled to break even.
With over $60.1 billion in circulating supply, USDC holds approximately 26% of the global stablecoin market, ranking second behind Tether (USDT). However, unlike USDT—which dominates through sheer volume and exchange integration—Circle differentiates itself through regulatory compliance, transparency, and institutional-grade partnerships.
Yet competition is intensifying. New entrants like PayPal USD (PYUSD) and First Digital USD (FDUSD) are gaining traction, while central banks advance their own digital currencies (CBDCs), potentially reshaping the landscape.
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For Circle, going public isn’t just about raising capital—it’s about establishing credibility, enhancing transparency, and accelerating innovation in a rapidly evolving sector.
Frequently Asked Questions (FAQ)
Q: Why did Circle buy out Coinbase’s stake in Centre?
A: To gain full control over USDC’s governance, compliance, and development roadmap ahead of its IPO. This allows Circle to make faster strategic decisions without requiring joint approval.
Q: Does Coinbase still benefit from USDC?
A: Yes. Through a revenue-sharing agreement, Coinbase receives 50% of the net yield from USDC reserves—but only proportional to how much USDC is held on its platform.
Q: Is USDC centralized after this acquisition?
A: Operationally, yes—Circle now fully controls issuance and standards. However, USDC remains interoperable across multiple blockchains and is used widely in decentralized finance (DeFi) applications.
Q: How does this affect USDC users?
A: Most users won’t notice immediate changes. Long-term, Circle’s full control may lead to faster innovation and broader real-world use cases through global fintech integrations.
Q: What are Circle’s main risks before going public?
A: Overreliance on partners like Coinbase for distribution, regulatory uncertainty in key markets, and competition from other stablecoins such as Tether and PayPal USD.
Q: Where will Circle list its shares?
A: Circle plans to list on the New York Stock Exchange under the ticker symbol “CRCL.” The exact IPO date and pricing have not yet been announced.
Final Outlook
Circle’s $210 million acquisition of Coinbase’s stake in Centre is far more than a corporate reshuffle—it's a strategic milestone signaling its evolution from a crypto-native startup to a regulated financial technology leader. As it prepares for its public debut, the company faces both immense opportunity and rising pressure to prove that USDC can transcend its role as a trading tool and become a true pillar of global digital finance.
With strong financials, expanding international partnerships, and a clear vision for real-world utility, Circle is positioning itself not just to survive the next phase of crypto evolution—but to help define it.
Core Keywords: Circle, USDC, stablecoin, IPO, Coinbase, Centre Consortium, digital finance, blockchain payments