Coinbase's asset management division has announced the launch of a stablecoin credit fund, providing a tokenized share class for institutional investors to access the fund through Superstate's platform. The fund, dubbed Coinbase Stablecoin Credit Strategy (CUSHY), focuses on yield generation from lending activities tied to digital assets.
Investors can hold tokenized shares on-chain through Superstate, with the fund 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 and the doubling of stablecoin supply to $300 billion 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 combines the efficiency of digital platforms with the rigor of traditional credit. The move also highlights a trend of asset managers using tokenization to extend existing products and bring traditional finance activities to the blockchain environment. CUSHY's tokenized share class is powered by FundOS, Superstate's platform for on-chain investment funds, which allows asset managers to issue and manage blockchain-based shares alongside traditional ones.
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 connection between on-chain demand and asset managers with institutional experience. The partnership is expected to expand the fund across multiple blockchain networks and into decentralized finance (DeFi) use cases, with Superstate anticipating the adoption of its platform by several more asset managers in the coming months.