The Centre consortium that has been assembled by Circle, the Goldman Sachs-backed crypto startup and the popular crypto exchange and wallet service Coinbase, mainly serves as a central platform for deposits and fiat conversions for Circle’s native cryptocurrency, which is a United States dollar-backed digital token.
Currently, the two entities wish to invite greater participation from the industry in an attempt to expand their network. Being a member of the Centre platform would allow institutions the right to issue or redeem USD coin, which is Circle’s own crypto.
This coin was launched back in September 2018, and since then it has done fairly well. The new policy of the platform would allow for the network to expand on a “membership-based framework and governance scheme.” However, members are expected to comply with Centre’s operating rules and issuer settlement as well as liability framework.
The platform shall also allow institutions to issue stablecoins on the Centre network, if they adhere to a number of criteria, including possession of a license and regulatory and tech compliance, etc.
This is a great idea for the two entities, who are extemely credible names in the industry. I personally feel that their credibility and reputation is going to be their strength, which they will leverage to encourage more participants becoming members of the consortium.
The Centre consortium thus has the potential to take off really soon, if the token keeps performing well in the market. Additionally, the more members that join in, the more chances of the token doing well in the market. So it all goes around in an interesting circle, with correlated actions and outcomes.