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    Coinbase acquires Utopia Labs to enhance on-chain payments and expand Coinbase Wallet capabilities

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    Coinbase has acquired Utopia Labs to improve its on-chain payments system and speed up development within Coinbase Wallet. The Utopia Labs team will join Base, Coinbase’s network that supports blockchain transaction scaling. This move is expected to foster on-chain app development and user growth. Moreover, Base has now become the largest Ethereum layer 2 for total value locked, surpassing long-time competitor Arbitrum. Coinbase also released its Bitcoin wrapper, cbBTC, on the Base network, which has already locked in around $1.3 billion in total value. Following the acquisition, Coinbase’s shares have surged past $300.

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    Coinbase, a big player in the cryptocurrency world, recently acquired Utopia Labs to improve its on-chain payments system. The deal, announced on November 13, will see the Utopia Labs team join Base, Coinbase’s network that helps scale blockchain transactions. The aim is to speed up the development of on-chain payments within Coinbase Wallet.

    Essentially, Base supports developers who create on-chain apps. When these apps attract users, Wallet then brings those users onboard. More users result in even more developers wanting to build on-chain, creating a cycle of growth.

    Coinbase’s Base became the largest Ethereum layer 2 for total value locked (TVL), according to DeFiLlama. Base has even surpassed Arbitrum, a longtime competitor.

    Coinbase also launched its own Bitcoin wrapper, cbBTC, on the Base network, which has quickly become one of the top BTC wrappers with around $1.3 billion in total value locked.

    Utopia Labs, the recently acquired company, developed a platform for individuals and protocols to manage crypto payments, especially stablecoins. It seems that companies involved in payments are becoming popular targets for acquisitions.

    Coinbase’s stock rapidly escalated past $300 for the first time since 2021 thanks to major gains for US crypto stocks following Donald Trump’s victory in the presidential election. As of November 13, the Coinbase stock sits around $290 per share. It’s thought that the Trump administration will be more lenient towards the cryptocurrency industry, which could indirectly lead to a boost in cryptocurrency prices.

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