Coinbase's asset management division has announced the launch of a credit fund linked to stablecoin markets, providing investors with on-chain access through a tokenized share class. The fund, dubbed Coinbase Stablecoin Credit Strategy (CUSHY), targets institutional investors seeking yield from lending activities tied to digital assets.
Investors will have the option to hold shares on-chain through Superstate's platform, with the fund available on Ethereum, Solana, and Base, Coinbase's blockchain built on Ethereum. This development reflects the growing convergence of traditional credit markets and crypto infrastructure, with stablecoin transactions surging in recent years as financial activities migrate to blockchains.
The stablecoin supply has doubled to $300 billion in two years, while monthly transaction volume has tripled to $1.2 trillion. According to Anthony Bassili, president of Coinbase Asset Management, 'Stablecoins are the foundation of the next financial era. With CUSHY, we are combining the efficiency of digital infrastructure with the rigor of traditional credit.' The move highlights a broader trend of asset managers treating tokenization as an extension of existing products for broader distribution, which could bring more traditional finance activity to the blockchain environment.
CUSHY's tokenized share class is powered by FundOS, Superstate's platform for bringing investment funds on-chain. Rather than building custom token structures, asset managers can use FundOS to issue and manage blockchain-based shares alongside traditional ones.
This approach is gaining traction, with Invesco, an asset manager with over $2 trillion in assets under management, recently adopting the platform. According to Jim Hiltner, co-founder of Superstate, 'We are the connective tissue between on-chain demand and managers who have highly sophisticated institutional experience.' Superstate expects several more asset managers to adopt the platform in the coming months, indicating early momentum beyond initial partners. The partnership will allow the fund to expand across multiple blockchain networks and into decentralized finance (DeFi) use cases, according to Superstate CEO Robert Leshner.