- The first edition of the initiative was launched in 2019
- The capital for this programme will be facilitated by Coinbase Asset Management
- Coinbase, for now, has not disclosed details on the size of the funding
Coinbase re-launched its funding initiative for stablecoins on Tuesday, August 13. Dubbed the “Stablecoin Bootstrap Fund”, this initiative aims to improve the liquidity of these assets on decentralized finance (DeFi) markets.
Coinbase, for now, has not disclosed details on the size of the funding. Citing a company spokesperson, a Coindesk report said the funding will be provided USDC and EURC stablecoins.
In its initial phase, dApps working on DeFi protocols — Aave, Morpho, Kamino, and Jupiter — can tap into Coinbase’s initiative to procure fundings. As an eligibility criteria, the projects must focus on ramping up stablecoin liquidity within their respective projects.
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“As we scale the fund over time and distribute liquidity across more protocols and stablecoins, we’re particularly eager to collaborate with pre-launch teams or those seeking to drive stablecoin growth from day one,” Coinbase said.
The first edition of this initiative was launched in 2019. The aim was to encourage DeFi developers establish liquid marketplaces.
Also read: Visa wants in on the booming $2 trillion Stablecoin market
“The fund helped seed onchain liquidity for USDC across a variety of blue-chip DeFi protocols, such as Uniswap, Compound, and dYdX, helping drive robust liquidity in the early innings of DeFi,” it claimed.
The capital for this programme will be facilitated by Coinbase Asset Management (CBAM). Coinbase has claimed that USDC holds $8.9 billion in Total Value Locked (TVL) and $2.7 trillion in annual onchain volume.
The stablecoin ecosystem, at present, is undergoing a major regulatory overhaul on the global level. Last month, for instance, U.S. President Donald Trump signed the stablecoin-focussed GENIUS Act into law to establish clear guidelines on the issuance and distribution of stablecoins.
