Key facts
- Coinbase has partnered with Spiko Finance to facilitate stablecoin payments in Europe.
- The partnership allows investors to use USDC and EURC for subscriptions and redemptions in money market funds.
- Transactions will be available 24/7, bypassing traditional settlement delays.
- The service is powered by Coinbase Payments and utilizes Coinbase's Ethereum L2 network, Base.
- Coinbase recently obtained a Markets in Crypto-Assets (MiCA) license, allowing it to offer regulated digital asset services across the EU.
- Coinbase relocated its EU headquarters to Luxembourg after receiving the MiCA license.
Coinbase has entered into a strategic partnership with Spiko Finance to enhance stablecoin payment capabilities for regulated investment funds (RIFs) within the European market. This collaboration follows Coinbase's recent acquisition of a Markets in Crypto-Assets (MiCA) license, which permits the exchange to offer regulated digital asset services across all 27 European Union member states.
The partnership enables investors in Spiko's European and U.S. Treasury bill money market funds to subscribe and redeem their investments using USDC and EURC. Coinbase highlighted that these transactions will be available around the clock, seven days a week, aiming to eliminate the processing times and liquidity constraints inherent in traditional settlement systems.
Coinbase stated that the new service allows investors to move idle stablecoins into short-term Treasury-backed funds at any time, including weekends and holidays. Redemptions can be converted back into stablecoins within minutes. The company is providing payment infrastructure, including wallet services and API connectivity, while its Ethereum L2 network, Base, handles low-cost blockchain settlement.
This move positions Coinbase favorably in the EU market, especially as its competitor, Binance, withdrew its application for a MiCA license in Greece. Despite the announcement, Coinbase's stock (COIN) saw a slight decline in pre-market trading.