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Coinbase To Store Users’ USDC Balances On Base Network

Coinbase Exchange is set to start storing its user's USDC balance on the Base Network, setting a new standard in its custody moves
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Coinbase To Store Users’ USDC Balances On Base Network

Highlights

  • Coinbase said it will start storing user's USDC balances on Base
  • Base is the exchange's layer-2 scaling network
  • The exchange said this will impact settlement fees, making it lower

American cryptocurrency exchange Coinbase is introducing more functionalities to its Layer-2 protocol Base Network, a feature that includes the storage of its user’s USDC balance. 

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Exchange Hints Base’s New Functionality

Max Branzburg, Vice President, Head of Consumer Products at Coinbase took to X to announce the next step that the company is taking with regards to Base. According to Branzburg’s X post, Coinbase is looking to increase its storage of corporate and retail customers’ USDC balance on Base.

Choosing to make this move means that the firm can conveniently manage and secure customer funds with lower fees while also achieving faster settlement times. In the long run, the goal is to ensure that Coinbase user experience is not negatively impacted by the improved functions. The publicly traded exchange sees this new development as an avenue to push its business on-chain.

Markedly, the decision to increase storage of both corporate and customers’ USDC balance on its L2 protocol is coming right after the firm docked down on the United States dollar-pegged stablecoin payment. A few days ago, Coinbase entered into a strategic partnership with Compass Coffee, a prominent veteran-owned coffee chain based in Washington D.C.

This deal requires that Compass Coffee accept USDC as a settlement option in a bid to expose customers to the advantages of using cryptocurrency payments, particularly USDC. Increased adoption of USDC is bound to also trigger the need for a larger storage protocol, further validating Coinbase’s new project.

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Coinbase Pushes Industry To Accept USDC Storage

Coinbase is hopeful that other companies will adopt this USDC storage move that it is choosing to adopt. Furthermore, Coinbase assured its users that their funds are secured as it does not repurpose customers’ funds. 

For context, the crypto exchange explained it does not engage in my form of lending that jeopardizes users’ deposits. There is an exception for customers who specially request that their funds be redirected.

At the same time, Coinbase customers have been warned to take note of the increase in transaction fees on the Base Network owing to another Coinbase congestion saga. Customers are advised to remain vigilant while the protocol finds a lasting solution to the problems pestering its ecosystem.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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