Coinbase Boosts DeFi Liquidity with Stablecoin Fund Relaunch

Coinbase Revives Stablecoin DeFi Fund

Crypto exchange Coinbase (COIN) has announced the relaunch of its Stablecoin Bootstrap Fund, aimed at increasing stablecoin liquidity within decentralized finance (DeFi) markets. The initiative is managed by Coinbase Asset Management and is initially deploying capital on Aave, Morpho, Kamino, and Jupiter.

Expanding DeFi Liquidity

The fund initially launched in 2019 to help protocols establish early trading pools for the USDC stablecoin. This earlier effort supported platforms such as Uniswap, Compound, and dYdX, contributing to the widespread adoption of USDC within the DeFi ecosystem.

Strategic Capital Allocation

The revamped initiative will allocate capital across both established and emerging protocols. The goal is to ensure users have access to stable yields and efficient markets. While Coinbase hasn't specified the exact size of the fund or the amounts allocated to each platform, a spokesperson indicated that the company will test placements across multiple networks before scaling.

Focus on USDC and EURC

Currently, the fund provides capital in USDC and EURC, Circle’s euro-pegged stablecoin. This move signals Coinbase's continued commitment to fostering a robust and diverse stablecoin ecosystem within DeFi.

DeFi Sector Growth

Coinbase’s initiative comes as the DeFi sector experiences accelerated growth, fueled by rising crypto markets and a more favorable regulatory environment in the U.S. Total assets held across DeFi protocols are nearing $200 billion, a near doubling since April, according to DefiLlama data. Still shy of the 2021 peak but momentum has been building lately.

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