Coinbase has relaunched its Stablecoin Bootstrap Fund to enhance liquidity for USD Coin (USDC) and Euro Coin (EURC) across decentralized finance (DeFi) ecosystems. Managed by Coinbase Asset Management, the initiative targets deployments on leading protocols including Aave, Morpho, Kamino, and Jupiter.
The revival follows the original 2019 fund that seeded early USDC liquidity in platforms like Uniswap, Compound, and dYdX, contributing to USDC's current dominance in DeFi trading volume. The new fund will deploy capital to reduce slippage, maintain stable borrowing rates, and support higher trading volumes. For USDC, initial allocations focus on Aave to bolster lending pool stability and Morpho to optimize peer-to-peer markets.
Concurrently, EURC deployments aim to expand euro-denominated liquidity, with Kamino receiving support for cross-currency pairs and Jupiter for stable asset conversions. This dual-currency strategy addresses global demand for currency diversification while positioning stablecoins as foundational infrastructure for onchain finance.
Coinbase will implement a measured rollout, scaling allocations based on protocol performance metrics to avoid market oversaturation. The fund underscores Coinbase's commitment to accelerating DeFi adoption by ensuring liquid, accessible markets for retail and institutional users alike.