Coinbase Asset Management (CBAM) has introduced CUSHY, a new on-chain digital credit strategy that uses a tokenized share class mechanism to bring traditional credit exposure onto public blockchains. The move is framed by the firm as a bridge between legacy fixed income markets and programmable finance.
Built on Superstate’s FundOS operating system, CUSHY is structured to support 24/7 primary and secondary market trading of fund shares across networks such as Solana and Base. FundOS is specifically designed “to streamline the tokenization of real-world assets” for asset managers seeking on-chain capital formation.
According to Coinbase Asset Management, the strategy rests on three pillars: on-chain public credit assets, structured private credit serving both digital-native and traditional borrowers, and tokenized yield sources that package underlying credit exposures into blockchain-native instruments.
FundOS, launched by real-world asset specialist Superstate, is described as tackling “the operational complexity of fund tokenization” and is already used to operate tokenized portfolios like USTB and USCC, which Superstate presents as proof that traditional securities can be issued, managed, and settled on-chain at scale.
CUSHY expects to launch in the second quarter as the first external fund issued using FundOS, according to the announcement. The fund will be administered by Northern Trust Hedge Fund Services and powered by the Omnium platform.
Coinbase said its tokenized share class for CUSHY may be made available for collateralization and transfer “across compliant digital venues.” The fund itself aims to generate yield by lending stablecoins and unspecified private credit opportunities.
“With CUSHY, we are fusing the high-velocity efficiency of digital rails with the institutional rigor of traditional credit,” Coinbase Asset Management President Anthony Bassili said. “We’re excited to have major partners such as Northern Trust, Apollo, Superstate, Solana, Base, and Coinbase supporting this important mission.”
In an earlier partnership announcement, CBAM said its alliance with Apollo aims “to bring Coinbase stablecoin credit strategies to market,” combining Apollo’s private credit origination with Coinbase’s tokenization stack so that “tokenized investment products providing exposure to Apollo-managed credit strategies” can be distributed through on-chain wrappers.
Those stablecoin credit strategies sit alongside Coinbase’s bitcoin-focused yield products, including the Coinbase Bitcoin Yield Fund, which targets a 4%–8% net bitcoin return per year over a market cycle while avoiding “riskier high-interest bitcoin loans and systematic call selling,” and the subsequent US-focused bitcoin yield strategy for accredited investors.
More broadly, industry research notes that tokenized private credit markets reached roughly $9.68 billion in 2025 after growing 930%, as on-chain credit systems emerge as “transparent, efficient, and permissionless” alternatives to bank-led lending that rely on smart contracts, decentralized oracles, and on-chain identity for underwriting.
This context positions CUSHY not as an isolated product but as part of a wider shift in which stablecoins, tokenized funds, and credit strategies are increasingly issued as blockchain-native claims, with Coinbase, Apollo, and Superstate each betting that institutional demand for compliant, yield-bearing digital instruments will continue to migrate on-chain.
