Coinbase, the leading crypto-currency exchange in the U.S., has announced that it will move customer and corporate USD Coin (USDC) balances to its Ethereum layer-2 platform, Base.
Moving balances to Base
Coinbase has announced that it will begin moving more of its customer and corporate USDC accounts to Base, its Ethereum layer-2 platform launched around seven months ago. Moving balances will enable the exchange to manage and secure customer funds with lower fees and settlement times. This transition to a layer-2 solution reflects Coinbase’s commitment to improving the user experience and optimizing its operations.
Impact on Coinbase.com accounts
The balance shift will not affect Coinbase Wallet accounts, as users of these accounts are responsible for their own private keys. Coinbase.com users’ tokens are currently held by the exchange in a secure multi-party wallet. This distinction between the two types of account reflects the different approaches to responsibility and control of digital assets.
Outlook for the future
Coinbase said it would hold customer funds 1:1 and would not lend funds without instructions. Moving balances on-chain could pave the way for a blockchain-based financial system. This approach strengthens user confidence and encourages wider adoption of blockchain technologies in the financial sector.
Conclusion
Coinbase has announced that it will move customer and corporate USD Coin (USDC) balances to its Ethereum layer-2 platform, Base. Moving balances will enable funds to be managed and secured with lower fees and settlement times.
