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Coinbase Helped Build USDC — So Why Is It Now Backing a Rival Stablecoin? Here's What They're Actually Trying to Do

(92 days ago) · 1 source · Summarized by CryptoBipto

Coinbase, which played a foundational role in creating USDC alongside Circle, is now supporting Open USD — a newer stablecoin that could potentially compete with its own creation. The move raises questions about Coinbase's long-term stablecoin strategy and whether it sees limitations in the USDC model that a new project could address.

WHY IT MATTERS

Stablecoins are cryptocurrencies designed to hold a steady value — usually pegged to $1. Think of them like digital dollars that live on the blockchain. USDC is one of the biggest stablecoins, and Coinbase helped create it. Now Coinbase is also supporting a newer stablecoin called Open USD, which could compete with USDC. It's a bit like a company that co-founded Pepsi suddenly investing in a new soda brand. This matters because stablecoins are the backbone of crypto trading and DeFi (decentralized finance) — whichever stablecoins win widespread adoption will have enormous influence over how the crypto economy works. For everyday users, it could eventually affect which digital dollars are easiest and cheapest to use.

On the surface, Coinbase backing a stablecoin that could rival USDC seems contradictory. But the move likely reflects a calculated strategic evolution rather than a betrayal of its own product.

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