Main cryptocurrency change Coinbase (COIN) introduced on Tuesday that it’s reviving its Stablecoin Bootstrap Fund for the primary time since 2019, aiming to spice up the liquidity of its stablecoin merchandise throughout a variety of common and rising decentralized finance (DeFi) protocols.
The transfer is a part of a long-term technique to make sure the provision of USDC for each established and rising platforms, whereas aiming to decrease borrowing prices, reduce buying and selling slippage, and promote the expansion of the DeFi sector.
Knowledge from DefiLlama exhibits that the entire worth locked (TVL) in DeFi protocols presently sits at $165.4 billion, with Aave (AAVE) and Lido (LDO) main the race with $41 billion and $40.8 billion, respectively.
Coinbase Stablecoin Bootstrap Fund to Present USDC and EURC Liquidity for Ethereum and Solana-based DeFi Platforms
In keeping with the announcement, the fund will initially present liquidity in USDC and EURC on behalf of its issuer, Circle, to Ethereum and Solana-based crypto lending and borrowing platforms, Aave, Morpho, Kamino, and Jupiter. The deployments managed by Coinbase Asset Administration will make sure that the stablecoins’ customers can entry dependable charges throughout “mature and rising protocols”.
Shan Aggarwal, the corporate’s chief enterprise officer, highlighted that the fund’s goal is to deploy stablecoin capital in on-chain merchandise, guaranteeing adequate liquidity for his or her distinctive use circumstances. The business large stated that the fund, the entire measurement of which stays undisclosed, might be scaled over time and provide assist to extra protocols and stablecoins, and is keen to collaborate with pre-launch groups or “these in search of to drive stablecoin development from day one”.
USD Coin (USDC) was a recipient of Coinbase’s first Stablecoin Bootstrap Fund in 2019, when Circle Web Group, the token’s issuer, acquired seed liquidity whereas it was nonetheless new to the DeFi market. The world’s second-largest fiat-backed stablecoin is vital to Coinbase’s crypto buying and selling platform and its native blockchain, Base. Nonetheless, Tether USD (USDT) dominates stablecoin quantity throughout the market and has a $100 billion lead on USDC’s whole market cap, which presently sits at $66.26 billion.
Coinbase believes that its bid to spice up stablecoin liquidity throughout DeFi merchandise may appeal to extra crypto merchants and debtors to USDC. Circle launched USD Coin along with Coinbase in September 2018, with each entities sharing income in a 50:50 settlement.
USDC Bootstrap Fund Offered Working Capital For Circle, Compound, dYdX, Uniswap, and PoolTogether
The corporate launched the USDC Bootstrap Fund in September 2019 to assist Ethereum-based DeFi protocols by deploying capital within the stablecoin immediately into their platforms. Crypto lending and borrowing platform Compound and derivatives buying and selling venue dYdX acquired the primary of these funds.
The $1 million price of USDC every given to each corporations was not a grant, however working capital redeployed by the protocols to their respective liquidity swimming pools to decrease borrowing prices and velocity up commerce executions. The initiative helped set up USDC as a key participant within the DeFi market lower than a yr after its debut.
In 2020, Coinbase expanded the fund past centralized platforms to incorporate decentralized protocols like Uniswap and PoolTogether, an Ethereum-based permissionless DeFi lottery platform for financial savings and winnings.
At the moment, USDC is obtainable on seven completely different blockchains, together with Ethereum, Solana, Base, Polygon, Aptos, Avalanche, and Sui.
Coinbase’s Q2 2025 Earnings Fall Wanting Expectations, however Stablecoin Income Rises 12% to $332 Million
The revival of the Stablecoin Bootstrap Fund comes every week after Coinbase launched its Q2 2025 earnings report, which confirmed $1.5 billion in income for the corporate, falling wanting Wall Avenue’s expectations of $1.56 billion to $1.59 billion. Internet revenue got here in at $1.4 billion, whereas adjusted internet revenue, excluding funding features, was simply $33 million.
The crypto large’s non-GAAP earnings have been significantly weak, with revenue of solely $0.12 per share of COIN, effectively under the $1.49 per share price projected by analysts. The dip was primarily on account of a pointy drop in transaction income, pushed by falling spot crypto buying and selling volumes.
On the intense facet, whereas Coinbase’s income was down 26% from the primary quarter of the yr, its subscription and companies gross sales have been down simply 6% at $656 million. These divisions have been supported by the rising USDC balances on exchanges, as the corporate’s stablecoin-related income rose 12% to $332 million. Coinbase expects its subscription and repair income to carry house between $665 million and $745 million in Q3 2025.
The value of COIN fell greater than 8% in after-hours buying and selling following the discharge of the earnings report, in keeping with Yahoo Finance information.
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Coinbase Pockets Rebranded to Base, Declares Plans to Rework right into a ‘Tremendous App’, Permitting Customers to Entry Social Media, Make Funds, Chat, and Commerce
Throughout its “A New Day One” livestream occasion final month, Coinbase rebranded the Coinbase Pockets to ‘Base App’. The corporate plans to evolve the product from a self-custody crypto pockets right into a Web3 “tremendous app” that mixes social media, funds, apps, chat, and buying and selling on a single platform.
Key new options embody Base Pay, a one-click checkout system for USDC funds, which is being rolled out to Shopify retailers, and a deliberate brick-and-mortar retailer. It has additionally launched a common on-chain identification by the “Base Account” and integrates with the Zora protocol (ZORA) to permit customers to tokenize their social media posts.
Base app head of product, John Granata, stated that the app goals to “develop financial freedom, creativity, and innovation”, including that the rebrand might be a place to begin for a brand new type of social community on the blockchain. The Web3 app, presently out there to beta customers on the waitlist as of July 16, is constructed on the Base chain and incorporates a social feed powered by Farcaster, the place customers can submit, chat, ship cash, commerce, and earn.
On the time of writing, Nasdaq-listed Coinbase International, Inc. (COIN) is buying and selling at $322.62, up 0.94% within the final 24 hours.
