Coinbase Charts New Horizons: Infinite Interoperability with Ethereum and USDC
Coinbase is gearing up for a future where a billion users navigate millions of blockchains using decentralized apps seamlessly and securely. This vision was detailed by Anthony Bassili, Coinbase’s head of tokenization, during the TokenizeThis 2024 conference in Miami. He explained how Coinbase’s Ethereum layer-2 blockchain, named Base, is streamlining crucial processes like Know Your Customer (KYC) and Anti-Money Laundering (AML) checks through its innovative identity attestation service integrated with Ethereum and Coinbase’s verification system.
At the heart of this system is a tagging mechanism on the user’s smart wallets, which becomes active once the user completes the KYC process. Bassili anticipates that these initial steps will eventually mature into a more streamlined KYC reliance model, simplifying compliance and enabling easier market access. Already, over 300,000 wallets have been attested, indicating significant early adoption.
Base blockchain will enhance the usability of these verified identities by ensuring they are compatible across various Ethereum Virtual Machine (EVM) networks. The effort is bolstered by the support of USD Coin (USDC), with Coinbase having taken an equity stake in Circle, the company behind USDC, in August. “Currently, we’re managing over $28 billion in total assets within Circle,” Bassili noted. Additionally, Coinbase possesses the capability to mint USDC, setting the stage for a future where assets could be directly exchanged for one another without needing to convert to dollars first.
However, Bassili acknowledged that achieving this future state will require more than just technological innovation; it will also need a robust regulatory framework and instantly available identity checks integrated into new products. He envisions cryptocurrency as the ultimate realization of a liquid, an open market structure where assets can freely interact and complexity can be engineered to suit any transaction need. For now, USDC serves as a critical foundational step toward developing such a market structure.
