Coinbase Revives Stablecoin Bootstrap Fund to Boost USDC and EURC Liquidity

Coinbase has relaunched its Stablecoin Bootstrap Fund after a six-year hiatus, marking a renewed effort to bolster liquidity for its stablecoins, USDC and EURC, across key DeFi protocols. The initiative, managed by Coinbase Asset Management, targets platforms such as Aave and Morpho on Ethereum, and Kamino and Jupiter on Solana, aiming to enhance borrowing efficiency, stabilize lending pools, and optimize liquidity routing [2]. The move underscores Coinbase’s strategy to integrate more deeply into the onchain financial infrastructure and to reinforce the role of its stablecoins as foundational settlement assets in decentralized markets.

This revival echoes a similar effort in 2019, when Coinbase initially seeded liquidity on platforms like Compound and dYdX. That early investment played a pivotal role in establishing USDC as a leading stablecoin in the DeFi ecosystem. Today, USDC supports roughly $8.9 billion in total value locked (TVL) and facilitates approximately $2.7 trillion in annual on-chain transactions across multiple blockchains, including Ethereum, Base, Solana, and Sui [2]. With Tether’s USDT maintaining a dominant market position, Coinbase’s initiative is a direct push to expand the adoption and usage of USDC and EURC by making them more accessible on high-volume DeFi platforms.

The fund also prioritizes collaboration with early-stage and pre-launch projects, offering liquidity to incentivize user adoption and drive protocol growth from the outset. According to Coinbase’s Chief Business Officer, Shan Aggarwal, this strategy is part of the company’s broader vision to accelerate onchain adoption and meet the rising demand for decentralized financial services. By providing liquidity at the development stage, Coinbase aims to stimulate innovation and expand the DeFi ecosystem in a more efficient and inclusive manner [2].

Coinbase’s decision to relaunch the fund comes amid a backdrop of increased DeFi activity and evolving regulatory environments globally. The effectiveness of this initiative will depend on factors such as developer adoption, the continuation of incentives, and the integration speed of USDC and EURC into core markets. The company aims to reduce trading slippage and improve onchain trading efficiency while reinforcing the infrastructure necessary for long-term stablecoin adoption in decentralized markets.

Coinbase’s commitment to expanding the utility of its stablecoins is further reflected in its recent financial performance. Despite reporting $1.5 billion in Q2 revenue—slightly below expectations—the company saw a 12% increase in stablecoin-related earnings, primarily driven by USDC activity. As of Q2 2025, USDC balances in Coinbase products grew by 13% quarter-over-quarter to $13.8 billion, and stablecoin revenue reached $332 million [1]. These figures highlight the growing importance of stablecoins in Coinbase’s overall business model and financial strategy.

The relaunch of the Stablecoin Bootstrap Fund marks a strategic milestone in Coinbase’s evolution from a cryptocurrency exchange to a leading infrastructure provider in the onchain financial ecosystem. By fostering greater liquidity and accessibility for USDC and EURC, the company aims to solidify its leadership in the stablecoin space and further integrate its offerings into the broader DeFi landscape.

Source:

[1] AmbCrypto - [https://ambcrypto.com/heres-why-coinbase-revived-stablecoin-bootstrap-fund-after-6-years/](https://ambcrypto.com/heres-why-coinbase-revived-stablecoin-bootstrap-fund-after-6-years/)

[2] The Block - [https://www.theblock.co/post/366656/coinbase-stablecoin-liquidity-aave-morpho-kamino-jupiter-new-bootstrap-fund](https://www.theblock.co/post/366656/coinbase-stablecoin-liquidity-aave-morpho-kamino-jupiter-new-bootstrap-fund)