Exchange targets deeper liquidity across top decentralized finance protocols
Coinbase has relaunched its Stablecoin Bootstrap Fund in a bid to expand USD Coin (USDC) liquidity in the decentralized finance (DeFi) sector. The initiative begins with support for USDC markets on Aave, Morpho, Kamino, and Jupiter, although the exchange has not disclosed the size of the new fund.
Coinbase co-created USDC with Circle Internet Group and remains a central player in the stablecoin’s growth. However, Tether (USDT) still dominates the market, holding an over $100 billion lead in market capitalization compared to USDC. Strengthening liquidity in DeFi could help USDC attract more crypto traders, lenders, and borrowers to its ecosystem.
DeFi Market Context
The total value locked (TVL) across DeFi currently stands at $165.4 billion, according to DeFiLlama, led by Aave with $41 billion and Lido’s Ether staking protocol with $40.8 billion.
Coinbase’s original bootstrap fund launched in September 2019, deploying $1 million each to protocols such as Compound and dYdX to seed USDC liquidity. At that time, USDC was just one year old and still building its footprint in the market. Today, USDC’s market capitalization sits at $65.6 billion, trailing USDT’s $164.6 billion, per CoinGecko data.
USDC is now supported across multiple blockchains, including Ethereum, Base, Solana, Polygon, Aptos, Avalanche, and Sui.
The fund revival comes as Coinbase reported $1.5 billion in Q2 revenue, slightly below analyst expectations of up to $1.59 billion. While overall revenue fell 26% from the prior quarter, stablecoin-related income — primarily from USDC — rose 12% to $332 million.
Coinbase is also pursuing a broader vision for its ecosystem. The company recently rebranded Coinbase Wallet to Base app, aiming to transform it into a “super app” combining payments, trading, social features, and decentralized applications. The app remains in beta testing.
With stablecoin revenue climbing and DeFi adoption expanding, the renewed Bootstrap Fund could play a pivotal role in positioning USDC as a stronger competitor to Tether in the rapidly evolving digital asset market.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.