Coinbase Buys Utopia Labs

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The stablecoin payment processor Utopia Labs has joined Base, the Layer 2 network of the crypto exchange giant Coinbase. This collaboration aims to strengthen onchain payments within Coinbase Wallet and Base.

Jesse Pollack, the head of Coinbase Wallet and Base, expressed enthusiasm about the partnership, stating that Utopia Labs’ expertise will be instrumental in accelerating the future of onchain payments. The two companies share a common vision of enabling low-cost, fast, and global payments for everyone.

In July 2023, Utopia Labs introduced a payment infrastructure that allows users to send the stablecoin USDC to any bank account in the United States, provided the bank has shared its know-your-business and know-your-customer credentials with the firm.

However, in October 2023, Utopia Labs announced its decision to wind down all services by November 6th. Despite this, the company’s CEO, Kaito Cunningham, clarified that this move is not a shutdown but rather a strategic shift towards a new direction.