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

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.

About the Author

Teuta Franjkovic

Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear. Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3. An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.

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