Coinbase is gearing up for a future where a billion customers can safely and securely use decentralized applications on millions of blockchains. This will be made possible through the integration of the Ethereum Virtual Machine (EVM) and Circle’s USD Coin (USDC) within Coinbase’s Ethereum layer-2 Base blockchain.
Speaking at the TokenizeThis 2024 event in Miami, Anthony Bassili, Coinbase’s head of tokenization, explained that the Base blockchain will streamline the Know Your Customer (KYC) and Anti-Money Laundering (AML) processes by utilizing identity attestation through the Ethereum Attestation service and Coinbase verification. This verification creates a tag on the user’s smart wallet.
Once customers have completed the KYC procedure, they can access Coinbase verification. While this may not be sufficient in all cases, Bassili highlighted that over 300,000 wallets have already been attested.
To provide Web3 access to customers with verified identities and wallets, Base will leverage the interoperability of EVM networks. The entire ecosystem will be supported by USDC, in which Coinbase acquired an equity stake in Circle in August. Bassili stated that Circle currently holds over $28 billion in total assets, and Coinbase has the ability to mint USDC.
In the future, when robust tokenized assets in various asset classes emerge, it may be possible to directly trade assets without the need for an intermediate step of trading them for dollars. Bassili emphasized that crypto offers a liquid and open market structure, where assets can be traded with each other without being limited to dollar pairs. For now, USDC serves as the first step towards developing this market structure.
In other news, Kim Hamilton Duffy, from Centre, answered six questions in a recent magazine feature.