The Utopia Labs team will now integrate with Base, Coinbase’s layer 2 scaling network, to advance the company’s on-chain payments initiatives, particularly through Coinbase Wallet, according to a blog post by the exchange. Coinbase described the acquisition as part of a wider strategy to create a cycle of growth in the on-chain ecosystem. The company noted that Base supports developers building decentralised applications, which in turn attract users. These users are then onboarded through Coinbase Wallet, creating further demand for on-chain development.
Base, launched by Coinbase to provide scalability for Ethereum transactions, recently surpassed Arbitrum as the leading layer 2 network in terms of total value locked (TVL). According to DeFiLlama, Base has approximately USD 3.15 billion in TVL, compared to Arbitrum's USD 2.9 billion.
Utopia Labs offers a platform for managing cryptocurrency payments, particularly those involving stablecoins. Its tools aim to simplify transactions for both individuals and protocols, aligning with Coinbase’s goal to expand its on-chain payment services.
This acquisition highlights a trend in the Web3 space where payments platforms have become attractive acquisition targets. In October, for instance, payment technology firm Stripe acquired stablecoin-focused platform Bridge in a USD 1.1 billion deal, signalling a growing interest in stablecoin-based payments.
Other developments from Coinbase
In October 2024, Coinbase revealed a partnership with Visa to deliver real-time account funding to its customers through the integration of Visa Direct. The partnership aimed to add convenience and new solutions for Coinbase clients across the regions of the US and EU, including real-time, reliable, and safe money movements.
Through the process of integrating with the Visa Direct network, Coinbase clients gained the ability to deposit funds into their accounts in real-time using eligible Visa debit cards.
