Coinbase Relaunches Fund to Strengthen USDC Presence Across Leading DeFi Platforms

Highlights:

• Coinbase has relaunched a fund that will boost USDC liquidity across major DeFi platforms.
• USDC hopes the new program will help to close the market cap gap with Tether.
• The company plans to channel liquidity support to the small platforms.

Coinbase has launched a stablecoin liquidity program to expand access across top and emerging decentralized finance platforms. The company confirmed that its first placements will target Ethereum-based lenders Aave and Morpho, along with Solana-based trading platforms Kamino and Jupiter. Asset Management will assume management of the deployments and integrate them with the company’s liquidity strategy.

Coinbase (@coinbase) has relaunched its Stablecoin Bootstrap Fund, aiming to deepen liquidity for @USDC , and now EURC, across both established and emerging DeFi protocols. The initiative marks a renewed effort to shore up stablecoin flow on-chain, with initial deployments… pic.twitter.com/bldbz2HWq5

— Block News International (@blocknewsint) August 13, 2025

The project will offer both USDC and EURC at launch, although additional stablecoins will be added at a later date. Coinbase will offer these assets to active borrowing markets and trading platforms to guarantee stable interest rates and acceptable capital access. The company aims to maximize stability within the DeFi ecosystem by collaborating with more protocols alongside existing ones.

Coinbase said it will distribute liquidity across multiple protocols to balance interest rates and encourage consistent trading volumes. The program also intends to give early liquidity to projects that often struggle to attract capital during their initial stages. This approach aims to reduce barriers for users and improve participation in DeFi markets.

Coinbase Relaunches Fund to Strengthen USDC’s DeFi Position

The relaunch comes nearly six years after Coinbase introduced its first Stablecoin Bootstrap Fund in 2019. That program provided $1 million each to lending protocol Compound and derivatives venue dYdX. The latest version of the fund seeks to expand USDC’s market share and enhance its role in lending and trading activities.

The market capitalization of USDC is about $66.28 billion, according to CoinMarketCap data. In contrast, Tether has a capitalization of 165.01 billion. Coinbase hopes that USDC can bridge this gap through the use of targeted liquidity injections. The company hopes to promote liquidity by minimizing borrowing expenses and cutting trading slippage. The company will also channel support to the small platforms experiencing difficulties in accessing early liquidity. In this way, it aims to promote innovation and guarantee uniform rates across a variety of protocols.

Integration Ties to Coinbase’s “Base App” Expansion

The liquidity push is in line with the overall strategy of Coinbase. The company plans to rebrand Coinbase Wallet to the Base app. The new version will serve as a universal platform integrating social tools, applications, payments, chat, and trading. Coinbase views this development as an opportunity to bring more people into DeFi and stablecoin-enabled services. 

John Granata, head of product for the Base app, said the goal is to expand economic freedom, creativity, and innovation. The app is still in the beta stage of development. The app may open up a pathway where users may transact with digital assets and financial tools under a single platform. Meanwhile, the company recently launched decentralized exchange trading directly in its main app. The service is available to U.S. customers outside New York State. 

Coinbase recently reported $1.5 billion in revenue in its second-quarter report, which was a bit lower than expectations in the market. Stablecoin revenue, mainly USDC, increased by 12% to $332 million. This growth points to the growing importance of stablecoins in the company and the overall DeFi industry.

Our Q2 2025 financial results are now live. pic.twitter.com/PMx4cOz9fM

— Coinbase 🛡️ (@coinbase) July 31, 2025