TLDR:
- Coinbase launches a second Stablecoin Bootstrap Fund through CBAM to deepen DeFi stablecoin liquidity.
- Initial liquidity placements target Aave, Morpho, Kamino, and Jupiter to support stablecoin adoption.
- USDC now holds $8.9B in TVL and processes $2.7T in annual onchain volume across multiple blockchains.
- The fund aims to back both established protocols and pre-launch teams for early liquidity growth.
Coinbase is taking another step to expand the stablecoin market. The exchange has confirmed a new round of funding to deepen liquidity for USDC and other stablecoins in decentralized finance.
The move comes through its Coinbase Asset Management arm, which will oversee the initiative. This fresh injection builds on its earlier efforts that helped USDC cement its place in DeFi.
Early liquidity placements will target major protocols, with more deployments expected as the program scales.
Coinbase Revives the Stablecoin Bootstrap Fund
According to a company blog post by Shan Aggarwal on August 12, 2025, the exchange is relaunching its Stablecoin Bootstrap Fund. The first version of the fund was launched in 2019 alongside USDC’s growth push. That round seeded liquidity into top DeFi protocols like Uniswap, Compound, and dYdX, enabling early market depth from day one.
Coinbase says the fund will now operate under Coinbase Asset Management, focusing on deepening stablecoin liquidity across the onchain ecosystem. Early recipients of the new liquidity injections include Aave, Morpho, Kamino, and Jupiter.
The company stated that these initial placements are designed to create stable, accessible rates for users in both mature and emerging protocols.
The relaunch also targets collaboration with pre-launch projects seeking immediate market depth. This means teams can secure stablecoin liquidity from the start, without relying on slow organic inflows.
Coinbase noted that future fund allocations will expand to cover more protocols and stablecoin types.
USDC’s Expanding Market Presence
USDC’s market reach has grown sharply since its launch. Coinbase reports that the stablecoin now has about $8.9 billion in total value locked across DeFi. Onchain transaction volumes for the token reach roughly $2.7 trillion annually, making it one of the most used digital assets in the space.
The token operates across Ethereum, Base, Solana, Hyperliquid, Sui, Aptos, and other networks. Coinbase pointed to this multi-chain presence as a foundation for expanding the liquidity program. The new fund is positioned to enhance rates and stability across these ecosystems, encouraging more stablecoin use in DeFi lending, borrowing, and trading.
Coinbase framed the move as part of its broader belief in an onchain financial future. By deploying its own resources into market liquidity, the company aims to strengthen DeFi’s core infrastructure.
While the fund focuses on stablecoins today, its structure could support other assets in the future. For now, the emphasis remains on building trust, ensuring deep liquidity, and supporting protocols from launch. The exchange views the relaunch as another building block in its long-term on-chain growth strategy.
