Coinbase Revives Stablecoin Fund: DeFi Liquidity Boost
Coinbase Relaunches Stablecoin Bootstrap Fund to Fuel DeFi Growth
Coinbase is making waves in the decentralized finance (DeFi) space with the revival of its Stablecoin Bootstrap Fund. The initiative aims to inject liquidity, specifically in USDC and EURC, into key DeFi protocols across Ethereum and Solana.
The fund's initial deployments will focus on:
- Ethereum-based lending platforms like Aave [AAVE] and Morpho.
- Solana-based trading platforms Kamino and Jupiter.
Coinbase is actively seeking collaborations, especially with teams launching new platforms or aiming to accelerate stablecoin adoption from the outset.
Expanding Beyond USDC
While the exact size of the relaunched Stablecoin Bootstrap Fund remains undisclosed, Coinbase has confirmed its intention to provide liquidity using both Circle’s USDC and its EURC stablecoin. The fund may also incorporate other stablecoins in the future.
This move aligns with Coinbase's long-term strategy to ensure consistent USDC liquidity across established and emerging networks. The company anticipates that this initiative will lead to reduced borrowing costs, decreased trading slippage, and overall growth for participating protocols.
A Second Act After Six Years
The fund's revival occurs six years after its initial launch, during which it deployed $1 million each to Compound and dYdX. This initial investment played a role in establishing USDC as a prominent stablecoin within the DeFi ecosystem.
Currently, USDC boasts a $65.6 billion market cap, second only to USDT's $164.6 billion, according to CoinGecko.
Coinbase's Q2 2025 results revealed $332 million in stablecoin revenue, with average USDC balances in Coinbase products increasing by 13% quarter-over-quarter to reach $13.8 billion.
Source: Coinbase Q2-2025 Shareholder Letter
Stablecoins as a Revenue Driver
Despite reporting $1.5 billion in Q2 revenue—slightly below expectations—Coinbase experienced a 12% increase in stablecoin-related earnings, primarily driven by USDC activity.
CEO Brian Armstrong has minimized concerns regarding potential competition from Charles Schwab’s planned entry into the crypto market, emphasizing Coinbase’s leading position and drawing a comparison between the platform and “the Amazon of crypto.”