In a bid to inject more depth into decentralized finance markets, Coinbase has announced a new wave of funding dedicated to supporting USDC liquidity.
The initiative, dubbed the second Stablecoin Bootstrap Fund, will roll out capital to protocols across several blockchains — with Aave, Morpho, Kamino, and Jupiter among the first to benefit. The exchange is also leaving the door open for other projects to pitch for inclusion.
The announcement marks a strategic follow-up to Coinbase’s 2019 Bootstrap Fund, which helped seed USDC markets on now-established DeFi giants such as Uniswap, Compound, and dYdX. Since then, USDC’s footprint has grown significantly, now representing about $8.9 billion in total value locked and processing roughly $2.7 trillion in yearly transactions.
Why Coinbase Is Acting Now
Coinbase says the current climate presents an ideal moment to scale on-chain financial services. A spokesperson highlighted the strong momentum in DeFi adoption, pointing to a record $40.7 billion in active decentralized loans as evidence of demand. While crypto-backed lending is a clear driver, the exchange insists the broader goal is to deepen stablecoin accessibility across the entire ecosystem.
Lower Rates, More Access
By supplying more USDC to major lending and borrowing protocols, Coinbase expects borrowing costs for the stablecoin to drop, making it more appealing for leveraged positions and on-chain trading strategies. The firm also hopes the fund will encourage more capital to flow on-chain, especially if it can work directly with pre-launch teams to integrate liquidity from the start.
Scaling the Fund Over Time
The Stablecoin Bootstrap Fund will not be limited to the initial recipients. Coinbase plans to grow the program gradually, extending support to additional protocols and potentially other stablecoins as market needs evolve.
“The right time to build is now,” the spokesperson said, emphasizing that projects both large and small could qualify for liquidity injections if they show potential to strengthen the stablecoin economy.
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Source: https://coindoo.com/new-coinbase-initiative-aims-to-deepen-usdc-liquidity-across-chains/