Coinbase's asset management division has unveiled a stablecoin-focused credit fund, dubbed CUSHY, which provides institutional investors with a unique opportunity to generate yield from digital asset lending activities. The fund will offer tokenized shares, allowing investors to hold them on-chain through a partnership with Superstate, a specialist in tokenization.
This innovative fund will be available on multiple blockchain networks, including Ethereum, Solana, and Base, a blockchain built by Coinbase on Ethereum. The launch of CUSHY highlights the growing convergence of traditional credit markets and crypto infrastructure, driven in part by the rapid growth of stablecoins, which have seen their supply double to $300 billion and monthly transaction volume triple 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 CUSHY aims to combine the efficiency of digital rails 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 prominent asset manager, recently adopting the platform. The partnership between Coinbase and Superstate is expected to expand the fund's reach across multiple blockchain networks and into decentralized finance (DeFi) use cases, with Superstate's CEO, Robert Leshner, noting that the collaboration will enable the fund to tap into on-chain demand and leverage the expertise of institutional asset managers.