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Coinbase Layer 2 is a “Home Run”: Franklin Templeton

Last Updated May 13, 2024 8:15 AM
Teuta Franjkovic
Last Updated May 13, 2024 8:15 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Franklin Templeton praises Coinbase’s Base platform for leading the SocialFi sector.
  • The Base layer 2 prioritizes security and aims for mass adoption with EVM and USDC integration.
  • Coinbase holds substantial USDC assets and is actively promoting its adoption on Base.

Investment firm Franklin Templeton, has lauded the progress and expansion of Base, Coinbase’s Ethereum layer 2 scaling solution.

The company said  Base had hit a “home run” due to its adoption in memecoins and social finance applications, including Friend.tech.

Franklin Templeton Highlights Base’s Role in SocialFi Boom

Franklin Templeton, which manages more than $1.4 trillion in assets, celebrated Base’s growth .

Base hosts the Friend.tech social finance site. Friend.tech, recently hit a $200 million  market cap following a token airdrop . According to Franklin Templeton, Base accounts for around half of crypto’s SocialFi activity.

Additionally, the volume of stablecoins like USDC on Base has surged past $2.5 billion. This was bolstered by Coinbase’s promotion of free USDC transfers via its native wallet.

Base Blockchain Leads the Ethereum L2 Race

The company commended Base for its Socialfi performance, describing it as a  a “key vertical” for growth and adoption.

The firm said  that Base’s integration with Coinbase means it could capture a substantial portion of the Socialfi market. This integration helps direct access for Coinbase users.

The firm also said Base should maintain its status within the world of layer 2s. Base is currently the third-largest Ethereum rollup, with over $5 billion in total value locked  (TVL), trailing only behind Arbitrum and Optimism.

Bolstering Security with EVM, USDC Integration

Recently, CCN reported that Anthony Bassili, the head of tokenization at Coinbase, said his company managed over $28 billion in total assets within Circle and that Coinbase could also mint USDC. He also said recent initiatives to increase USDC storage on its Base platform were part of a broader strategy to encourage adoption by other companies.

Bassili said Coinbase’s use of the Ethereum Virtual Machine (EVM) and Circle’s USD Coin (USDC) kept the platform secure. As a result, he suggested this could lead to billions of people using the blockchain.

Bassili also said that Base, could simplify Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.

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