Coinbase accelerating into RWA to boost revenue? Its asset management arm may team up to launch tokenized money market fund
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Coinbase accelerating into RWA to boost revenue? Its asset management arm may team up to launch tokenized money market fund
After traditional financial giants such as BlackRock, JPMorgan, and Franklin Templeton entered the space, crypto giant Coinbase has also been reported to be planning a tokenized money market fund, accelerating its move into the RWA sector.
Navigating Web3 tides with focused insightsBy Nancy, PANews
Following traditional financial giants such as BlackRock, JPMorgan, and Franklin Templeton entering the space, crypto giant Coinbase is reportedly planning to launch a tokenized money market fund, accelerating its expansion into the RWA sector.
Partnering with Apex to Launch Tokenized Money Market Fund
Recently, according to CoinDesk citing multiple sources familiar with the matter, Coinbase Asset Management is collaborating with financial services provider Apex Group to create a tokenized money market fund.
Coinbase Asset Management is the asset management arm of Coinbase. In March 2023, Coinbase announced the acquisition of institutional-grade digital asset manager One River Digital Asset Management (ORDAM), one of the largest Bitcoin holders at the time, which was registered with the U.S. SEC as an investment advisor. Through this acquisition, ORDAM was transformed into Coinbase Asset Management (CBAM), operating as an independent business and wholly-owned subsidiary of Coinbase, aiming to attract institutional investors interested in crypto assets.
By the end of last year, Coinbase Asset Management had already begun preparing for a full-scale entry into the RWA space. The asset manager launched Project Diamond, a smart contract-driven platform that received in-principle approval from the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority, aiming to enable institutions to directly create, manage, buy, and sell a range of native digital assets on-chain.
Headquartered in Bermuda, Apex Group manages over $3 trillion in assets and provides services across 50 jurisdictions, offering a broad range of solutions to asset managers, financial institutions, private clients, and family offices, including fundraising solutions, fund administration, digital onboarding and banking accounts, custody, ESG ratings, and advisory services. Prior to partnering with Coinbase, Apex Group has collaborated with several crypto projects—for instance, earlier this year it partnered with staking infrastructure provider Figment Europe to launch staking exchange-traded products for Ethereum and Solana.
Apex Group is also a member of Next, Bermuda’s Digital Asset Business Trade Association, a consortium of digital asset firms licensed by the Bermuda Monetary Authority (BMA). As one of the world’s renowned offshore financial centers, Bermuda offers a supportive and comprehensive regulatory framework for digital assets, making it a preferred destination for crypto companies seeking registration and licensing—Coinbase included. Facing increasing regulatory pressure in the U.S., Coinbase obtained a license in Bermuda in 2023 and established an offshore exchange. Compliance is likely a key factor behind the collaboration between Coinbase Asset Management and Apex Group, particularly given institutional users’ strong demand for regulatory compliance and security assurance.
Diversifying Revenue through RWA Expansion
Coinbase’s push into RWA may stem from its efforts to diversify its business model. It is well known that Coinbase has long faced tightening regulations, significant user attrition, and declining revenues. Beyond its core exchange business, the company has previously explored wallets, developer toolkits, custody, and Layer 2 solutions.
According to Coinbase’s first-quarter revenue report, total revenue reached $1.638 billion, a significant increase from $773 million in the same period last year; net revenue stood at $1.588 billion, up sharply from $736 million year-on-year. The turnaround from losses to profitability was primarily driven by surging Base-related income and ETF custody fees.
Currently, RWA has emerged as a compelling narrative bridging traditional and crypto finance, drawing widespread market attention and participation. According to Dune analytics, over the past month, RWA has been the top-performing mainstream crypto narrative in terms of price growth.
Meanwhile, as more traditional and crypto firms enter the space, the RWA market continues to expand. Data from RWA research platform rwa.xyz shows that as of July 25, the market cap of tokenized U.S. Treasuries exceeded $13.18 billion, reaching a record high. The market is primarily distributed across blockchain networks such as Ethereum, Stellar, Solana, Mantle, and Polygon. Among 98 issuers, BlackRock, Franklin Templeton, and Ondo dominate the majority of market share, with BlackRock’s BUIDL tokenized fund managing nearly $530 million in assets.
Although Coinbase has not yet played a major role in the RWA space, its founder Brian Armstrong mentioned RWA last year among his list of ten promising crypto sectors, expressing his belief that over time, many forms of assets will be—and should be—represented on open, permissionless blockchain networks, enabling new financial infrastructure characterized by programmability, composability, global 24/7 liquidity, and trust-minimized settlement. Moreover, last year, Coinbase joined forces with Circle, Aave, Base, and Centrifuge to launch the Tokenized Assets Coalition, aiming to promote education, advocacy, and broader adoption of public blockchains, asset tokenization, and institutional DeFi, while jointly building the infrastructure needed for RWA adoption.
As of now, Coinbase has not commented on the launch of the tokenized money market fund. How it will enhance its competitiveness in the RWA space remains to be seen.
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