Coinbase Just Joined a 140-Company Stablecoin Alliance. Here's What It Means for the Stock.
The cryptocurrency exchange is backing a disruptive new stablecoin.
Overview
On June 30, Coinbase (NASDAQ: COIN) joined a coalition of more than 140 financial, tech, and retail companies to back a new stablecoin called Open USD (OUSD). That move was surprising, since Coinbase was a founding partner for Circle's (NYSE: CRCL) USDC (CRYPTO: USDC) stablecoin, and it still retains all the interest income from USDC on its own exchange.
But with that crucial revenue-sharing partnership with Circle set to expire on Aug. 18, Coinbase appears interested in supporting other stablecoins, such as OUSD, to reduce its exposure to USDC. That shift already crushed Circle's stock, but what does it mean for Coinbase's stock?
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Originally published at www.fool.com.