Coinbase Revives Stablecoin Bootstrap Fund to Boost DeFi Liquidity and Diversify Cross-Border Transactions

Coinbase has decided to relaunch its Stablecoin Bootstrap Fund with the aim of increasing liquidity in the decentralized finance (DeFi) sector.

The new fund will be managed by Coinbase Asset Management (CBAM) and placed on various platforms, including Aave, Morpho, Kamino, and Jupiter. The main goal is to provide initial liquidity for USDC (USD Coin) and EURC (Euro Coin), which are both stablecoins issued by the company.

According to reports, this move is a continuation of an initiative that began in 2019 when Coinbase provided initial liquidity for USDC on Uniswap, Compound, and dYdX. This led to significant growth in the market, as it now holds roughly $8.9 billion in total value locked (TVL) and has nearly $2.7 trillion in annual volume.

The deployment of EURC will cater to the growing demand for alternatives to the US dollar. By placing these stablecoins in pools and aggregators, Coinbase aims to offer users and projects the option to settle in euros and simplify cross-border flows that require currency diversification.

This relaunch comes at a crucial time when DeFi is experiencing a rebound after months of reactivation. Total assets across decentralized protocols have reached around $200 billion, but still below the 2021 peak.

In conclusion, Coinbase’s decision to relaunch its Stablecoin Bootstrap Fund aims to improve market depth and operating conditions for both retail and institutional users across various blockchain networks.

Source: crypto-economy.com