Coinbase's asset management division has announced the launch of a stablecoin credit fund, offering a tokenized share class for investors to access the fund on-chain. The fund, dubbed Coinbase Stablecoin Credit Strategy (CUSHY), is designed for institutional investors seeking yields from digital asset lending activities. Investors will have the option to hold tokenized shares on-chain via Superstate's platform, which will be available on Ethereum, Solana, and Base, a blockchain built on Ethereum by Coinbase. 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 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 embracing tokenization as an extension of existing products to broaden 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, which allows asset managers to issue and manage blockchain-based shares alongside traditional ones without building custom token structures.
This approach is gaining traction, with Invesco, an asset manager with over $2 trillion in assets under management, recently adopting the platform, underscoring a shift towards shared infrastructure rather than one-off tokenization efforts. Superstate's co-founder, Jim Hiltner, noted that the company serves as the connective tissue 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 Superstate anticipating several more asset managers to adopt the platform in the coming months.