Leading crypto exchange Coinbase (COIN) has announced the revival of its Stablecoin Bootstrap Fund, a strategic move aimed at fortifying stablecoin liquidity within decentralized finance (DeFi) markets.
Under the management of Coinbase Asset Management, the initiative kicks off with deployments on prominent platforms such as Aave, Morpho, Kamino, and Jupiter, as detailed in a recent blog post.
Originally launched in 2019, the program was designed to support protocols in seeding early trading pools for the USDC stablecoin. This initial endeavor played a pivotal role in bolstering platforms like Uniswap (UNI), Compound (COMP), and dYdX (DYDX), contributing significantly to the integration of USDC within the DeFi ecosystem, where it remains the most widely utilized stablecoin.
The refreshed initiative will see the allocation of capital across both established and emerging protocols, with the primary goal of ensuring users have access to stable yields and efficient market conditions.
Although specific details regarding the fund size and individual deployment amounts have not been disclosed by Coinbase, a company spokesperson informed CoinDesk that the initiative will undergo testing across various networks before expanding further. Currently, the fund is providing capital in USDC and EURC, Circle’s euro-pegged stablecoin.
Coinbase’s latest move comes at a time when the DeFi sector is experiencing rapid growth, fueled by surging crypto markets and a more favorable regulatory environment in the U.S. The total assets locked across DeFi protocols have nearly doubled since April, totaling close to $200 billion collectively, although still below the peak reached in 2021, according to data from DefiLlama.
Discover more: JPMorgan Analyzes Decentralized Finance and Tokenization Growth Trends
