Coinbase's asset management division has launched a stablecoin-focused credit fund, dubbed CUSHY, which will provide investors with on-chain access to tokenized shares. The fund is designed for institutional investors seeking to capitalize on lending activities tied to digital assets. Investors will have the option to hold tokenized shares on-chain using Superstate's platform, which will be available on Ethereum, Solana, and Base, Coinbase's Ethereum-based blockchain.
This development reflects the growing convergence of traditional credit markets and crypto infrastructure, driven by the surge in stablecoin transactions. Stablecoins, which are cryptocurrencies pegged to fiat currencies, have seen a significant increase in usage, with their supply doubling to $300 billion and monthly transaction volume tripling to $1.2 trillion over the past two years.
According to Anthony Bassili, president of Coinbase Asset Management, "Stablecoins are the foundation of the next financial era, and with CUSHY, we are combining the efficiency of digital infrastructure with the rigor of traditional credit." The fund's tokenized share class is powered by FundOS, Superstate's platform for bringing investment funds on-chain. This approach is gaining traction, with Invesco, a large asset manager, recently adopting the platform. Superstate's co-founder, Jim Hiltner, noted that the company serves as a bridge between on-chain demand and asset managers with sophisticated institutional experience.
The partnership is expected to enable the fund to expand across multiple blockchain networks and into decentralized finance (DeFi) use cases, with several more asset managers anticipated to adopt the platform in the coming months.