Coinbase Will Move Customer and Corporate USDC Accounts to its Stablecoin Base
According to a recent post by Coinbase vice president Max Branzburg, the popular crypto exchange will be migrating more of its customer and corporate stablecoin accounts to its Ethereum layer-2 blockchain called Base.
This new blockchain was launched about seven months ago and the move is expected to offer benefits such as lower fees and faster settlement times for cryptocurrency transactions.
However, this change will only be applicable to accounts on Coinbase.com and not on Coinbase Wallet, as those users are responsible for managing their own private keys.
Currently, the tokens on Coinbase.com accounts are held custody by Coinbase in a wallet secured through multiparty computation.
Branzburg emphasized that the exchange always holds customer assets 1:1 and does not lend funds unless specifically instructed to do so.
The move by Coinbase towards utilizing a blockchain system like Ethereum is seen as a step towards a future financial system that operates entirely on the blockchain.
