Coinbase Revives Stablecoin Fund to Boost USDC DeFi Liquidity

Coinbase has relaunched its Stablecoin Bootstrap Fund after nearly six years to enhance stablecoin liquidity in decentralized finance (DeFi) protocols. The initiative, managed by Coinbase Asset Management (CBAM), will initially deploy Circle’s USDC and EURC stablecoins on platforms including Aave, Morpho, Kamino, and Jupiter, with plans to expand further. The move aims to support DeFi protocols by providing consistent and reliable liquidity, enabling users to engage in lending, borrowing, and trading activities with greater efficiency [2].

This marks a revival of Coinbase’s 2019 Stablecoin Bootstrap Fund, which played a key role in establishing USDC as a core stablecoin in DeFi by seeding liquidity on platforms such as Uniswap, Compound, and dYdX. The first fund initially allocated $1 million to Compound and dYdX and later expanded in 2020 with additional support for Uniswap and PoolTogether, totaling $1.1 million [2]. The deployments are designed to ensure users can access reliable rates across both mature and emerging protocols, as Coinbase continues to distribute liquidity across more protocols and stablecoins.

While the exact size of the new fund remains undisclosed, the company emphasized that the initiative aligns with a broader strategy to accelerate stablecoin adoption and expand onchain financial services. According to Coinbase’s Chief Business Officer, Shan Aggarwal, the timing reflects a pivotal moment in the adoption of onchain services, where liquidity remains a critical factor in enabling DeFi’s growth [2]. The relaunched fund is also part of Coinbase’s broader push into decentralized finance, including plans to integrate a decentralized exchange to offer access to a wider range of digital assets.

The fund's focus on USDC is particularly significant given the stablecoin’s growing ecosystem across multiple blockchain networks, including Ethereum, Base, Solana, Hyperliquid, Sui, and Aptos. USDC now facilitates transactions worth over $5.9 trillion in total volume, reinforcing its role as a dominant stablecoin in the DeFi space [7]. The move could attract more crypto traders and borrowers to USDC as the stablecoin seeks to close the gap with Tether (USDT), which holds a significantly larger market capitalization.

Coinbase’s latest move follows a broader trend of centralized exchanges seeking to expand their influence in DeFi. The company has also signaled ambitions to become an "everything exchange," offering services such as tokenized stocks, prediction markets, and early-stage token sales. The relaunch of the Stablecoin Bootstrap Fund underscores Coinbase’s strategic alignment with DeFi’s evolution and its commitment to supporting stablecoin-driven innovation [2].

Source: [1] Cointelegraph. (2025, August 5). Coinbase revives stablecoin fund to boost USDC in DeFi liquidity. https://cointelegraph.com/news/coinbase-revives-stablecoin-fund-to-boost-usdc-defi-liquidity

[2] The Block. (2025, August 9). Coinbase stablecoin liquidity on Aave, Morpho, Kamino, and Jupiter. https://www.theblock.co/post/366656/coinbase-stablecoin-liquidity-aave-morpho-kamino-jupiter-new-bootstrap-fund

[3] Crypto Economy. (2025, August 8). Coinbase relaunches stablecoin bootstrap fund to supercharge DeFi liquidity. https://crypto-economy.com/coinbase-relaunches-stablecoin-bootstrap-fund-to-supercharge-defi-liquidity/

[4] CoinGlass. (2025, August 10). Coinbase revives stablecoin funding program to bolster DeFi liquidity. https://www.coinglass.com/ru/news/532236

[5] Blockonomi. (2025, August 9). New Coinbase fund targets DeFi liquidity gaps across Aave, Kamino. https://blockonomi.com/new-coinbase-fund-targets-defi-liquidity-gaps-across-aave-kamino-and-more/

[6] Holder.io. (2025, August 5). Coinbase revives stablecoin fund to enhance DeFi liquidity. https://holder.io/news/coinbase-stablecoin-fund-defi-liquidity/

[7] PYMNTS. (2025, August 10). Circle's USDC volume hits $5.9 trillion. https://www.pymnts.com/earnings/2025/circle-usdc-volume-hits-6-trillion-dollars-race-first-mover-advantage/