Coinbase restarts Stablecoin Bootstrap Fund initiative, six years later, detailed here.
Coinbase, the leading cryptocurrency exchange, has recently relaunched its Stablecoin Bootstrap Fund. The aim of this fund is to boost the liquidity of its stablecoins, USDC and EURC, across major DeFi platforms on Ethereum and Solana.
The fund, managed by Coinbase Asset Management, will provide liquidity to established and emerging protocols to facilitate smoother stablecoin access and usage. This move is expected to enhance stable lending pools, particularly on Aave, improve peer-to-peer lending efficiency on Morpho, and bolster liquidity provision and trade aggregation on Solana’s Kamino and Jupiter. The fund will also support the growth of DeFi protocols on these blockchains by providing competitive stablecoin availability, which is essential for the long-term USDC dominance and DeFi adoption.
The relaunch of the Stablecoin Bootstrap Fund reflects a strategic push by Coinbase to deepen its role in onchain infrastructure and reinforce USDC's position as a foundational settlement asset across decentralized markets. USDC currently holds approximately $8.9 billion TVL (Total Value Locked) and $2.7 trillion in annual transaction volume.
The original fund, launched six years ago, seeded USDC liquidity on early DeFi protocols such as Uniswap and Compound. The relaunched fund has the potential to expand to include other stablecoins in the future.
Coinbase's CEO, Brian Armstrong, compared the company to the "Amazon of crypto." He downplayed concerns about Charles Schwab's planned entry into the crypto space.
The average USDC balances in Coinbase products rose 13% quarter-over-quarter to $13.8 billion. The size of the relaunched Stablecoin Bootstrap Fund has not been disclosed. In Q2, Coinbase reported $1.5 billion in revenue, with a 12% increase in stablecoin-related earnings. The company's Q2 2025 results showed $332 million in stablecoin revenue. USDC currently holds a $65.6 billion market cap, second only to USDT's $164.6 billion.
Coinbase is interested in collaborating with pre-launch teams or those seeking to drive stablecoin growth. The first deployments of the fund will be on Ethereum-based lenders Aave and Morpho, and Solana-based trading platforms Kamino and Jupiter.
In summary, the Stablecoin Bootstrap Fund's purpose is to deploy capital to key DeFi protocols to boost liquidity and efficiency. Its impact is expected to improve borrowing costs, trading performance, and stablecoin availability on Ethereum and Solana DeFi platforms, thereby facilitating overall DeFi growth and user experience.
[1] Coinbase Q2-2025 Shareholder Letter [2] [3] [5] Various sources [4] Not provided in the paragraph
- Coinbase is focusing on enhancing the liquidity of stablecoins USDC and EURC not only on Ethereum but also on Solana, with the relaunch of the Stablecoin Bootstrap Fund.
- The fund, managed by Coinbase Asset Management, aims to support DeFi protocols on both Ethereum and Solana, providing competitive stablecoin availability that's crucial for long-term USDC dominance and DeFi adoption.
- The original Stablecoin Bootstrap Fund, launched six years ago, seeded USDC liquidity on DeFi protocols like Uniswap and Compound. The relaunched fund may potentially expand to include other stablecoins in the future.
- The strategic push by Coinbase, as reflected in the relaunch of the Stablecoin Bootstrap Fund, is aimed at deepening its role in onchain infrastructure and reinforcing USDC's position as a foundational settlement asset across decentralized markets.
