Coinbase's asset management division has announced the launch of a stablecoin credit fund, dubbed CUSHY, which provides investors with on-chain access to a tokenized share class. This fund aims to generate yield from lending activities tied to digital assets, catering to institutional investors. Investors will have the option to hold shares on-chain through Superstate's tokenization platform, with the fund available on Ethereum, Solana, and Base, Coinbase's Ethereum-based blockchain. The growing convergence of traditional credit markets and crypto infrastructure is reflected in this fund.
Stablecoin transactions have surged in recent years, with the supply of stablecoins 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. 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 using tokenization as an extension of existing products for broader distribution, potentially bringing more traditional finance activities to the blockchain environment.
CUSHY's tokenized share class is powered by FundOS, Superstate's platform for bringing investment funds on-chain. This approach is gaining traction, with Invesco, an asset manager with over $2 trillion in assets under management, recently adopting the platform.
Superstate's co-founder, Jim Hiltner, stated, 'We are the connective tissue between on-chain demand and managers who have highly sophisticated institutional experience.' The company expects several more asset managers to adopt the platform in the coming months, indicating early momentum beyond initial partners. Superstate CEO Robert Leshner noted that the partnership will enable the fund to expand across multiple blockchain networks and into decentralized finance (DeFi) use cases.