Coinbase and Apollo Merge Blockchain, Traditional Finance to Tap $3T Stablecoin Market

Coinbase has joined forces with Apollo Global Management, a leading asset manager, to develop a stablecoin-based credit product, aiming to tap into the growing stablecoin market and expand opportunities in private credit and asset tokenization. The partnership, announced on October 28, will see Coinbase Asset Management (CBAM) and Apollo collaborate on strategies including over-collateralized asset lending, corporate direct lending, and tokenized credit holdings, with plans to launch innovative credit investment products by 2026, according to a Lookonchain report. Anthony Bassili, president of CBAM, emphasized the unique advantages of the 24/7 blockchain-based stablecoin ecosystem, projecting the market could reach $3 trillion by 2030, according to The Block report.

The collaboration aligns with broader industry trends, as stablecoin adoption accelerates across financial services. For instance, Citigroup Inc. and Coinbase recently partnered to enhance digital asset payment capabilities for institutional clients, focusing on fiat-to-stablecoin conversions and 24/7 cross-border transactions, as noted in a Bloomberg report. Citi's head of payments, Debopama Sen, highlighted stablecoins as a critical enabler for "programmability and conditional payments," with the market expected to surpass $1 trillion in five years. Coinbase, which already offers $100,000 loans to U.S. customers using digital assets as collateral, is further positioning itself as a bridge between traditional finance and blockchain innovation, as The Block reported.

Apollo's expertise in credit underwriting and tokenization complements Coinbase's infrastructure, creating a hybrid model that leverages blockchain's efficiency while adhering to conventional risk management. The partnership also reflects Apollo's growing interest in digital assets, including its prior collaboration with Securitize to launch tokenized credit products and investments in real-world asset platforms like Plume Network, as The Block noted. Meanwhile, Coinbase's recent expansion of altcoin offerings—such as aPriori (APR) and Meteora (MET)—demonstrates its strategy to diversify its asset portfolio amid a competitive market, according to The Block.

The stablecoin sector itself is experiencing rapid growth, with JPMorgan upgrading Coinbase's valuation to $34 billion by 2027, partly due to potential revenue from a Base token and the exchange's integrated brokerage, custody, and market-making services in a CoinDesk report. Elsewhere, Japanese fintech firm JPYC launched a yen-backed stablecoin, signaling global interest in non-U.S. dollar digital currencies. As regulators and institutions increasingly recognize stablecoins' utility in payments and lending, Coinbase's partnerships with Apollo and Citi underscore its ambition to dominate the next phase of financial infrastructure.