Coinbase and Circle announced a new structure for managing US Dollar Coin (USDC) in August 2023. Under the agreement, Centre Consortium would stop operating as a separate organisation, while Circle would take direct responsibility for issuing and governing USDC.
In their joint blog post, the companies said the change would simplify USDC’s governance as stablecoin regulation developed.
Why Circle took direct control
Circle was already the issuer of USDC, while Centre had provided the joint governance structure created by Circle and Coinbase.
The companies said the separate governance body was no longer needed as stablecoin rules became clearer. Circle would bring Centre’s responsibilities in-house, including control of USDC’s smart-contract keys and compliance with rules covering its reserves.
This structure gave Circle clearer responsibility for the stablecoin while Coinbase gained an equity stake in Circle.
The two companies also kept their commercial relationship. They continued sharing income from USDC reserves based partly on the amount of USDC held on their platforms. They also agreed to share income from wider USDC distribution and usage.
That arrangement gave Coinbase a direct financial reason to help grow USDC even though Circle remained responsible for issuing it.
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The partnership was also about expansion
The companies planned to add USDC to six more blockchains between September and October 2023. Their goal was to make the stablecoin available across more networks and increase its use for payments, trading, and decentralized applications.
The statement described the restructuring as a way to grow USDC’s circulation and global use.
That expansion has continued well beyond the original plan. Circle now issues USDC across a much wider network of blockchains and reports that the stablecoin is used in more than 185 countries. Circle reported $77 billion of USDC in circulation at the end of the first quarter of 2026.
The USDC market has therefore grown far beyond the roughly $26 billion mentioned when this restructuring was announced.
The relationship between Coinbase and Circle has also remained important to both companies. Coinbase’s later filings show that it continues to earn income linked to USDC’s circulation and distribution.
The biggest change is that Centre is no longer part of that structure. Circle now directly manages USDC, while Coinbase remains an important commercial partner and stakeholder in its growth.
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