Coinbase Launches Stablecoin Credit Fund (CUSHY) Amid Banking vs. Crypto Battle Over Clarity Act

As Washington navigates the ongoing battle between banks and crypto companies over the Clarity Act, Coinbase has introduced the Coinbase Stablecoin Credit Strategy (CUSHY), a new credit fund designed for qualified investors and institutions seeking exposure to public, private, and opportunistic credit.

The fund also provides access to structural alpha derived from tokenization, protocol incentives, and on-chain market structure. This launch underscores Coinbase’s confidence in stablecoins as a mature infrastructure for institutional credit distribution.

Stablecoin Growth and Coinbase’s Revenue

Stablecoins have seen explosive growth, with a total transaction volume of $33 trillion in 2025 and an average of 89 million daily holding addresses. Coinbase’s stablecoin-related revenue reached $1.35 billion in 2025, with subscriptions and services accounting for 41% of its total net revenue of $6.88 billion.

Fund Structure and Key Partners

The Coinbase Stablecoin Credit Strategy (CUSHY) offers optional tokenized shares, with the following infrastructure in place:

• Tokenization platform: Superstate FundOS
• Fund administrator: Northern Trust
• Prime services provider: Coinbase Prime
• Supported networks: Base, Solana, Ethereum

Strategic Shift: From Payments to Institutional Credit

CUSHY represents a strategic pivot for Coinbase, transforming stablecoin infrastructure into an asset management product with recurring institutional relationships. This move positions stablecoins not just as payment rails but as a new channel for institutional credit distribution—a layer the sector has yet to fully explore.

Real vs. Raw Stablecoin Volume

While stablecoin transaction volume hit $33 trillion in 2025, McKinsey and Artemis estimate that actual payment activity was closer to $390 billion. The Bank for International Settlements (BIS) reported annual stablecoin volumes of around $35 trillion in 2025, noting that most activity stemmed from trading, internal transfers, and automated processes. Only about $8 billion flowed through capital markets settlement in 2025, according to McKinsey.

Private Credit: The Bridge Between Stablecoins and Institutional Finance

Private credit serves as a direct link between stablecoin capabilities and the needs of institutional finance. The Federal Reserve tracked bank commitments to private credit vehicles, which grew from $8 billion in Q1 2013 to $95 billion in Q4 2024. This expansion occurred within traditional financial systems, relying on bilateral relationships, manual fund administration, and limited secondary-market access.

On-chain rails, such as those offered by Coinbase, aim to streamline subscription and transfer mechanics without altering credit underwriting. Coinbase’s bet is that operational improvements alone will attract institutional allocators to tokenized structures.

Tokenized Assets: A Growing Market

Boston Consulting Group (BCG) estimates tokenized U.S. Treasuries at $13.6 billion in April 2026, while RWA.xyz reports tokenized credit at $5.01 billion.