Coinbase Relaunches Stablecoin Bootstrap Fund to Strengthen USDC and EURC Liquidity in DeFi

Coinbase has announced the revival of its Stablecoin Bootstrap Fund, a strategic move aimed at boosting liquidity for USDC and EURC across major decentralized finance (DeFi) platforms. Managed by Coinbase Asset Management, the fund will initially focus on supporting key protocols such as Aave and Morpho on Ethereum, as well as Kamino and Jupiter on Solana. While the exact capital pool remains undisclosed, the initiative targets critical DeFi use cases, including lending, borrowing, and trade aggregation. This development underscores Coinbase's commitment to fostering growth and stability in the DeFi ecosystem, particularly for its stablecoin offerings. The relaunch comes at a time when the demand for reliable and liquid stablecoins in DeFi continues to rise, positioning Coinbase as a pivotal player in the space.

Coinbase Revives Stablecoin Bootstrap Fund to Boost USDC Liquidity Across DeFi Platforms

Coinbase has relaunched its Stablecoin Bootstrap Fund, aiming to enhance liquidity for USDC and EURC across key decentralized finance protocols. The initiative, managed by Coinbase Asset Management, will initially support AAVE and Morpho on Ethereum, alongside Kamino and Jupiter on Solana.

The fund's undisclosed capital pool targets critical DeFi use cases—lending, borrowing, and trade aggregation—while reducing borrowing costs and minimizing slippage. "We're deploying capital to ensure sufficient liquidity for unique on-chain use cases," said Shan Aggarwal, Coinbase's Chief Business Officer.

This strategic MOVE builds on Coinbase's 2019 success in seeding USDC liquidity during its early stages. The exchange confirmed plans to expand support to pre-launch protocols with high adoption potential, reinforcing its long-term commitment to stablecoin accessibility across emerging networks.

Aave Surpasses US Banks in Asset Size Amid Short-Term Price Risks

Aave, the decentralized lending platform, has eclipsed three major US banks to rank among the nation's top 40 financial institutions by equivalent asset size. This milestone underscores DeFi's accelerating disruption of traditional finance, with Aave's active loans hitting a record $25 billion and outstanding balances quadrupling year-over-year to $26 billion.

Despite bullish fundamentals, technical indicators suggest a near-term price correction looms. The protocol now generates 71% of the entire lending market's revenue, fueled by what observers dub the 'Aavethena effect'—a combination of market momentum and institutional adoption.

Coinbase's relaunch of its Bootstrap Fund aims to bolster stablecoin liquidity for Aave and other DeFi protocols, further cementing the platform's position as the second-largest crypto entity by TVL. The capital migration from legacy finance appears irreversible, though volatility remains an ever-present companion to growth.