Coinbase shifts more USDC balances to Ethereum Layer 2 platform, Base

abdelaziz Fathi

Coinbase today said it plans to store an increased portion of its corporate and customer USDC (USD Coin) balances on Base, an Ethereum Layer 2 network developed by the company.


The move leverages the open-source OP Stack to improve the management and security of customer funds, with the added benefits of lower fees and quicker settlement times.

According to Max Branzburg, Vice President and Head of Consumer Products at Coinbase, this shift would not alter the Coinbase user experience. “This enables us to manage and secure customer funds with lower fees and faster settlement times, with no impact to the Coinbase user experience,” he stated.

The announcement coincides with a notable increase in the total value locked (TVL) on Base, which has seen a surge in user deposits surpassing $1 billion, according to data from DeFi Llama. This represents a strong growth from $470 million recorded earlier in the month, marking the platform’s TVL at more than double in four weeks.

Decentralized exchange Aerodrome has been identified as a major contributor to the rise in Base’s TVL, with its share increasing substantially since early February. Moreover, transaction activity on Base has seen a more pronounced uptick compared to other optimistic rollup solutions, such as Arbitrum, though the latter has also experienced notable growth. The OP Mainnet’s daily transaction count, in contrast, saw a more modest increase.

Earlier this month, a US court ruled that trading crypto assets on platforms like Coinbase constitutes securities transactions.

This judgment emerged from a case involving Ishan Wahi, a former Coinbase product manager who pleaded guilty to sharing insider information in order to profit from cryptocurrency trading, his brother Nikhil Wahi, and their associate Sameer Ramani.

The court’s verdict, particularly focusing on Ramani’s actions, highlights the view that even secondary market transactions of crypto tokens are considered investment contracts under the Howey test. This clarification came through a default judgment against Ramani, who is believed to have left the country to evade criminal charges linked to insider trading.

Read this next


TNS brings full-stack market data management to EMEA

“We are also delighted to have Ben Myers join our London-based TNS Financial Markets team as Head of Strategic Sales for EMEA, to bolster our presence in the region.”


Velocity Labs and Ramp Network facilitate fiat to crypto onramp on Polkadot via Asset Hub support

Velocity Labs is proud to announce a fiat to crypto onramp using Ramp Network through the integration of Asset Hub. Through it, Ramp will be able to service any parachain in the Polkadot ecosystem.

Executive Moves

INFINOX hires Mayne Ayliffe as Global Head of HR

“I look forward to working with our teams around the world to develop a strategic HR agenda that supports high performance and is centred on human motivation.”


Sterling to provide risk and margin support for fixed income

“Firms must have the tools to effectively manage their risk across all asset classes. As yields rise, we see more exposure from clients in the fixed income space. We understand their need to measure and mitigate risk in a highly regulated environment.”

Retail FX

FXOpen launches HK share CFDs: Tencent, Alibaba, Xiaomi, Baidu

Hong Kong share CFDs will be commission-free for a limited period of time.

Retail FX

IronFX Celebrates an Award-Winning Start to 2024 with a Series of Industry Recognitions

IronFX, a global leader in online trading, has embarked on 2024 with a spectacular display of accolades that highlight its commitment to excellence and innovation in the competitive financial services sector.

Industry News

FIA urges CFTC to regulate use cases rather than AI itself

“We urge the CFTC to refrain from crafting new regulations that generally regulate AI because this approach presents certain well-known pitfalls. By approaching the issue from the perspective of AI as a technology, rather than the use case for the technology, corresponding regulations would likely necessitate a definition of AI. We anticipate that any attempt to properly define AI would be very challenging and require considerable resources.”

Education, Inside View

The Power of Public Relations in Finance: Shaping Perceptions & Building Reputation

It’s safe to say that the finance industry has faced its share of reputation crises over the years, from the 2008 financial collapse to the many scandals around irresponsible lending, political corruption, and even Ponzi schemes. 

Digital Assets

Crossover’s crypto ECN executed over $3 billion in Q1 2024

“Our growth is also driving continued increases in the percentages of trades that are ‘Order Crossing Order’ (OXO). Currently, roughly 10% of all trades executed on CROSSx are OXO, another differentiator in our platform’s capacity. This capacity and our unique execution model provide value to both the market maker and taker, as evidenced by our commercial model.”