Coinbase Explores Future of Decentralized Applications and Blockchain Integration
During the TokenizeThis 2024 event in Miami, Coinbase’s head of tokenization, Anthony Bassili, outlined the company’s vision for accommodating a billion customers using decentralized applications (dApps) across millions of blockchains securely.
Bassili highlighted Coinbase’s Ethereum layer-2 Base blockchain, which aims to streamline Know Your Customer (KYC) and Anti-Money Laundering (AML) processes through identity attestation via the Ethereum Attestation service and Coinbase verification. Once customers complete the KYC procedure, they gain access to Coinbase verification, which creates a tag on their smart wallets.
Base intends to grant Web3 access to customers with verified identities by leveraging the interoperability of Ethereum Virtual Machine (EVM) networks. The ecosystem will be supported by Circle’s USD Coin (USDC), in which Coinbase acquired an equity stake in August. Bassili noted that Circle currently holds over $28 billion in total assets, and Coinbase has the capability to mint USDC.
Regarding the potential for trading assets directly without converting to dollars first, Bassili emphasized the need for regulatory frameworks and instant identity verification in product design. While this goal may still be distant, Bassili underscored the advantages of crypto as a liquid and open market structure, where assets can be traded without relying on dollar pairs.
In the interim, USDC serves as a foundational step towards developing such market structures.
