The leading US crypto exchange Coinbase says it’s launching a new fund dedicated to supporting developers building Decentralized Finance (DeFi) protocols.
The DeFi movement aims to create new platforms that will replace traditional financial instruments with a decentralized alternative that’s not controlled by corporations or governments.
Coinbase says the new fund is called the USDC Bootstrap Fund. It will distribute funds to startup companies in the form of the stablecoin USDC.
“Through the investment of USDC, our goal over time is to support DeFi teams in making their products safer, and more reliant and accessible than existing financial products.
We view this as just one first step for how Coinbase will support DeFi. In the coming months, we’ll share our learnings and future integrations with the community.”
Coinbase says its first investment will be in the lending platform Compound, and the second will be in the margin trading protocol dYdX.
The new fund is not part of Coinbase Ventures – the company’s traditional venture capital arm that has invested in dozens of companies in the blockchain and crypto ecosystem.
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