Coinbase CEO Brian Armstrong has expressed interest in incorporating Circle’s USD Coin (USDC) into payments on X, formerly known as Twitter.
In a Dec. 29 post, Armstrong suggested that USDC payments would be a valuable addition to the platform and called on the X team to consider implementing this feature.
The offering follows a similar proposal by Coinbase Principal Engineer Travis Bloom, who previously announced that X owner Elon Musk will allow users to send and receive USDC on the Base network. There were doubts about whether
Market players noted that the implementation of such features is in line with Company X’s broader ambitions to introduce payment systems and transform social media platforms into “app for everything.”
In January, X announced plans to roll out a peer-to-peer payment service similar to PayPal. The details of the service’s currency (fiat or virtual) remain unclear, but the platform has not yet begun the initiative.
However, X has made significant progress in securing money transmitter licenses across the United States. The company’s subsidiary, X Payments, is currently licensed in 33 states, including California, Illinois, and Virginia.
X USDC
The integration of USDC via Coinbase-backed Base could be a strategic move for X and stablecoins.
USDC is ranked as the world’s second largest stablecoin after Tether’s USDT and is focused on alignment with compliance standards. In 2024, USDC’s total supply increased by more than 80%, jumping from $24.2 billion to more than $43 billion.
Moreover, its presence on the Ethereum Layer 2 network has also exploded. Circle’s Peter Schroeder said supply of USDC’s layer 2 solutions, such as Base and Arbitrum, increased from $1.9 billion to $8.1 billion.
Base alone achieved 26x growth in USDC usage, solidifying its position as the leading Ethereum Layer 2 network by activity.
Additionally, Base is also the fastest growing Ethereum Layer 2 solution. The network currently reports 5.77 million active addresses each week, accounting for nearly 58% of all Layer 2 activity.
Additionally, the total amount of assets locked on the platform surged to $13.8 billion from $745 million recorded earlier this year, according to L2Beats data.
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