Even in the event that Coinbase became insolvent, theoretically that shouldn't impact USDC. USDC has entirely separate reserves that are in short term debt inst

Even in the event that Coinbase became insolvent, theoretically that shouldn't impact USDC. USDC has entirely separate reserves that are in short term debt instruments (i.e. T-bills) and cash equivalents, uncorrelated to the crypto ecosystem, and very safe. Even if the parent company of USDC (which is actually Circle, not Coinbase) were to become insolvent, that theoretically doesn't impact USDC at all, other than maybe USDC would have to wind down operations, and then people would just redeem for USD. The only scenario where USDC holders would be in trouble is if Circle violated their agreements and started making unsafe self-dealing investments with the USDC deposited funds. That is something that theoretically could happen, but since the operators are in the US, they would certainly go to prison for it. And we have reasonably reliable audits that state clearly that, at least so far, this has not happened.