Coinbase, Superstate to launch CUSHY stablecoin fund in Q2

Coinbase and Superstate will launch the Coinbase Stablecoin Yield Fund, known as CUSHY, in the second quarter. The fund will issue a tokenized share class on Superstate’s FundOS and offer institutional exposure to stablecoin credit strategies.

CUSHY plans to generate yield primarily by lending stablecoins and pursuing private credit investments. The tokenized share class will be available for onchain transfer and may be permitted for collateralization on compliant digital venues.

Northern Trust Hedge Fund Services will administer the fund. The fund’s infrastructure will run on the Omnium platform. FundOS supports public blockchains including Solana and Ethereum, with Base listed as coming soon.

Superstate describes FundOS as a platform that lets asset managers tokenize fund shares so they can be used onchain, for example as collateral in decentralized finance lending and for trading outside normal market hours.

The fund is targeted at qualified institutional investors. Superstate, founded in 2022 and registered with the Securities and Exchange Commission as a transfer agent, has previously issued tokenized funds such as USTB and USCC, which together report more than $1 billion in assets under management and offer tokenized share classes limited to qualified purchasers.

Anthony Bassili, president of Coinbase Asset Management, described the offering in the announcement: “With CUSHY, we are fusing the high-velocity efficiency of digital rails with the institutional rigor of traditional credit.” He named Northern Trust, Apollo, Superstate, Solana, Base and Coinbase as partners supporting the fund.

Coinbase launched a Bitcoin Yield Fund last year for accredited U.S. investors and used a tokenized share class on Base for that product. CUSHY will be the first external fund issued on FundOS.

The announcement did not disclose specific lending counterparties, target yields or risk controls. The fund will follow applicable regulatory requirements and investor qualification rules and will use the custodial, administrative and platform partners named by Coinbase and Superstate.