Coinbase plans to expand its on-chain payments product lineup as it hires Utopia Labs to work on Base, Coinbase’s Ethereum Layer 2 network. This move is meant to bring improved on-chain payment features to the Coinbase Wallet based on Utopia Labs’ experience in on-chain payment systems. This is in line with Coinbase’s general objectives, which are to enhance efficient, faster, and cheaper payment systems through blockchain.
DWF Labs(@DWFLabs) just received 10M $NIKO($495K, 1% of the total supply) for market making.
Previously, this wallet received 111.94B $X($35.6M) for market making.https://t.co/dC7F80BXT2 pic.twitter.com/GwTUzgbhbh
— Lookonchain (@lookonchain) November 13, 2024
Building a Flywheel of Innovation With Utopia Labs
The acquisition complements Coinbase’s culture of economic decentralization in which the growth of one product fuels the growth of other products. By integrating Utopia Labs’ expertise into Base, Coinbase is supporting a flywheel effect: As Base assists developers in creating exciting new on-chain applications, those applications naturally increase the number of users on-chain, who are then ‘funneled’ through Coinbase Wallet. These additional users, in turn, bring more developers to the ecosystem, thereby having a positive effect on the growth of the chain community.
Advancing the Future of Onchain Payments
The team of Utopia Labs has been one of the active participants in the creation of on-chain payment solutions, which in turn contributed to the development of the entire crypto space. This fundamental capability will now be applied to its parent mission at Coinbase: to make affordable, fast, and borderless payments universally accessible.
Given the fact that $8.5 trillion in transactions were made through stables in 1.1 billion transactions in the second quarter of the year 2024, Coinbase realizes the efforts for optimization of the payment process of using stablecoins are a must. With this partnership, Coinbase and Utopia Labs want to develop and improve the use of on-chain payments in the lives of people and companies everywhere.
A New Era for On-chain Finance
The ability of Coinbase to popularize and enhance the use of on-chain payments can alter the way people and companies transact. As established payment systems have issues with speed and cost, on-chain solutions offer the hope that payments can be made at high speed and at a lower cost. Utopia Labs’ integration with Base means the company has the tools to reinvent decentralized finance and adapt it to people’s lives by getting them into on-chain transactions.
With this new team, Coinbase comes closer to achieving its ultimate mission and building an open financial system for the world leveraging blockchain.
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