The Utopia Labs Team to Join Base Network to Boost Coinbase Wallet’s On-Chain Payment Capabilities
On Washington Time, November 13, Coinbase announced the acquisition of the on-chain payments platform Utopia Labs, aimed at enhancing its cryptocurrency exchange’s on-chain payments infrastructure. According to the announcement, the Utopia Labs team will be integrated into Coinbase's Base network, a layer-2 scaling solution, to accelerate the development of on-chain payments for Coinbase Wallet.
With this acquisition, Coinbase plans to leverage Utopia’s expertise to expedite the growth of its on-chain payment ecosystem. In its official blog, Coinbase stated, “Base is supporting developers building on-chain applications, attracting users to the on-chain ecosystem, and onboarding those users via Coinbase Wallet. This virtuous cycle incentivizes more developers to build on-chain.”
Base Emerges as the Largest Ethereum Layer-2 Network
Since its launch in 2023, Coinbase’s Base network has rapidly grown to become the largest Ethereum layer-2 solution by total value locked (TVL). According to DeFiLlama data, Base’s TVL has surpassed Arbitrum, reaching approximately $3.15 billion, compared to Arbitrum's $2.9 billion.
Additionally, in September, Coinbase launched its own Bitcoin wrapper token, cbBTC, on the Base network. cbBTC has quickly become one of the most popular Bitcoin wrappers, with over $1.3 billion in TVL, as per CoinMarketCap.
Utopia Labs Focuses on Stablecoin Payment Solutions
Utopia Labs specializes in providing crypto payment management solutions for individuals and protocols, with a focus on stablecoin transactions. This acquisition will help Coinbase optimize its on-chain payment infrastructure, increasing the efficiency and flexibility of blockchain-based payments. The Web3 sector has recently seen a surge in acquisitions, particularly targeting payment platforms. In October, payment giant Stripe acquired stablecoin platform Bridge in a $1.1 billion deal to strengthen its stablecoin payment capabilities.
Coinbase Stock Surges Following Trump’s Election Victory
Following Donald Trump’s victory in the U.S. presidential election, crypto stocks in the U.S. have seen significant gains. On November 11, Coinbase's stock surpassed $300 for the first time since 2021 and currently trades at around $290 as of November 13, according to Google Finance.
Michael Miller, an equities researcher at Morningstar Inc., noted, “We see Coinbase as a beneficiary of the election outcome, as the company has been facing regulatory pressure from the SEC. With the new Trump administration expected to take a more favorable stance towards the crypto industry, Coinbase’s staking business is likely to encounter less regulatory friction. Additionally, a more permissive approach to crypto regulation may serve as a tailwind for the overall market.”