Crypto exchange Coinbase revealed that it will start storing customer and corporate USD Coin (USDC) assets on its layer-two network, Base.
According to the X (previously called Twitter) post by Max Branzburg, the Head of Consumer Products at Coinbase, transferring USDC assets to Base will reduce the transaction fees and settlement times.
However, this change will only affect clients with Coinbase accounts, where the account keys are managed by the crypto exchange. As such, users with non-custodial Coinbase Wallet accounts will not be impacted by this development.
It is worth noting that Coinbase has yet to explain whether it will transfer a fixed portion or the entirety of customer and corporate USDC assets to Base. Data from Arkham Intelligence revealed that Coinbase stores most of its assets on the Bitcoin (BTC) and Ethereum (ETH) networks.
The assets on Base network, on the other hand, mostly consist of USDC, Ethereum, and Aero tokens, which comprise less than 1% of the company’s total holdings. However, this number will go up once the exchange starts transferring more USDC tokens to Base.
