Coinbase is fitting itself for a future of interoperability in which one billion customers will utilize decentralized applications across blockchains owing to an ETH and USDC integration
Coinbase’s Ethereum layer-2 Base blockchain will save time on Know Your Customer (KYC) and Anti-Money Laundering (AML) with identity attestation via the Ethereum Attestation service and Coinbase verification, which places a tag on the user’s so-called smart wallet, according to Coinbase head of tokenization Anthony Bassili, speaking at TokenizeThis 2024 in Miami.
Verification with Coinbase is accessible to customers who have completed the Know Your Customer (KYC) process. Although that might not be adequate in every circumstance, Bassili stated:
“We expect that eventually to evolve into a KYC reliance model. […] And it will start to form a market structure that makes it a lot easier for a simpler KYC process.”
Over 300,000 walletshave been attested thus far.
To grant Web3 access to consumers who possess wallets and verified identities, Base will utilize the interoperability capabilities of EVM networks. The USDC will provide support for the ecosystem.
In August, Coinbase acquired an equity stake in Circle. “At present, Circle has somewhere in the neighborhood of $28 billion in total assets,” Bassili stated. Additionally, Coinbase is capable of minting USDC.
The emergence of robust tokenized assets across various asset classes may facilitate the exchange of assets for assets, obviating the need to convert them to dollars beforehand. Basilio stated:
“I think […] we’re a while away from [that goal], because we need regulatory structures to show up, we need products themselves to be designed with identity checks instantly, and there is a lot of market structure that is still has to come.”
Bassili stated, “Cryptocurrency exemplifies the quintessence of a liquid free open market structure in which assets can self-organize and exchange for one another; dollar pair trading is not a prerequisite.” USDC is an initial stage toward developing this market structure in the interim.
