CUSHY, a new tokenized credit fund from Coinbase Asset Management, offers institutional investors a way to invest in multiple credit strategies onchain within the growing stablecoin ecosystem. The fund’s tokenized share classes were created using Superstate’s FundOS platform, letting investors hodl, transfer, and potentially use those shares in compatible onchain finance protocols without having to rebuild traditional fund infrastructure.
How the CUSHY tokenized credit fund works
CUSHY is focused on three main areas of investment:
- Provide high liquidity in public credit markets
- Provide a way for private companies to obtain asset based loans
- Develop structural alpha from tokenization and protocol incentives
CUSHY tokenized credit fund is administered by Northern Trust Hedge Fund Services and powered by Omnium. In addition to these two entities, Coinbase Prime provides custody and trading services. Investors are able to tokenize their shares on major blockchain platforms (e.g., Ethereum and Solana), with additional support from Base planned for the near future.
In contrast to traditional hedge funds, where trading occurs only during market hours, CUSHY offers 24/7 access to the onchain marketplace using the tokenized structure of its share class. This allows qualified institutional investors the ability to move easily between traditional hedge fund infrastructures and decentralized finance (DeFi) platforms.
Why it’s important
CUSHY is a critical milestone in connecting the traditional financial (TradFi) market with the world of digital assets. The dramatic, continual increase in the volume of stablecoins being transacted means that institutional demand for stablecoin‑denominated yield products has surged. FundOS, from Superstate, is currently managing over USD 1 billion in assets under management (AUM) with its own USTB and USCC funds, and is enabling third-party fund launch from inception for the first time.
The stablecoin supply has surged to over USD 300 billion (more than double in just the last two years), and a Total Transaction Volume of around USD 8.3 trillion, with Tether USDT leading the market, but with other stablecoins getting accepted for different purposes within the crypto ecosystem, and, nevertheless, the real-world asset (RWA) sector is eating into the market aggressively.