Coinbase is relaunching its Stablecoin Bootstrap Fund first launched in 2019 to spice up the liquidity of the stablecoin USDC in a variety of well-liked and rising decentralized finance protocols.
Coinbase stated on Tuesday its first placements will present USDC (USDC) liquidity into Ethereum-based lenders Aave and Morpho, and Solana-based buying and selling platforms Kamino and Jupiter.
“As we scale the fund over time and distribute liquidity throughout extra protocols and stablecoins, we’re significantly desperate to collaborate with pre-launch groups or these in search of to drive stablecoin development from day one,” it added.
The deployments can be managed by Coinbase Asset Management and are designed to make sure customers can “entry dependable charges throughout mature and rising protocols,” Coinbase stated.
Coinbase didn’t disclose the dimensions of the fund. Cointelegraph contacted Coinbase for remark.
Coinbase helped create USDC alongside its issuer, Circle Internet Group, however continues to be key to its ecosystem. Tether (USDT) dominates stablecoin quantity throughout the crypto ecosystem, with an over $100 billion lead on USDC’s market capitalization, and Coinbase’s bid to spice up USDC’s liquidity in DeFi might appeal to extra crypto merchants and debtors to the token.
Total worth locked in DeFi protocols at the moment sits at $165.4 billion, led by Aave and Ether (ETH) liquid staking protocol Lido at $41 billion and $40.8 billion, DeFiLlama information exhibits.
Blue chip DeFi protocols profit from Coinbase’s first fund
The revival of Coinbase Stablecoin Bootstrap Fund comes six years after it was first launched in September 2019 to help Ethereum-based DeFi protocols reminiscent of Uniswap, Compound and dYdX with USDC liquidity.
The first of these funds deployed $1 million every to Compound and dYdX, which helped pave the best way for USDC to develop into a well-liked stablecoin in DeFi after solely launching a yr earlier.
USDC now holds a market cap of $65.6 billion, trailing USDT at $164.6 billion, CoinGecko information exhibits.
Like most stablecoins, USDC is supported on a number of blockchains, together with Ethereum, Base, Solana, Polygon, Aptos, Avalanche and Sui.
Coinbase’s complete income down, however stablecoin income up
It comes as Coinbase reported $1.5 billion in income for the second quarter, falling wanting business expectations of $1.56 billion to $1.59 billion.
Related: Coinbase companions with Perplexity AI for real-time crypto costs
However, whereas income fell 26% from the earlier quarter, its stablecoin-related income — primarily by USDC — rose 12% to $332 million.
Coinbase goals to be an “all the things app”
Coinbase is aiming to launch a “tremendous app” after rebranding its Coinbase Wallet to “Base app” on July 16, which the alternate stated was to evolve it “from a pockets into an all the things app that brings collectively social, apps, chat, funds, and buying and selling.”
The app will intention to “broaden financial freedom, creativity, and innovation,” Head of product for Base app, John Granata, stated, including that it may very well be a place to begin for a brand new sort of social community.
The app continues to be within the beta stage.
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