Coinbase's new fund allows institutions outside the U.S. earn 4–8% passive income on Bitcoin—paid in BTC.
Coinbase recently launched a feature that could change how investors view Bitcoin. Bitcoin yield is now real for institutions outside the U.S.
The new fund, launched by Coinbase Asset Management, allows non-U.S. institutional investors to earn between 4% and 8% annual returns, paying them directly in Bitcoin. This is huge because Bitcoin usually doesn’t generate passive income like staking coins on Ethereum or Solana. But with this new fund, Coinbase is making Bitcoin yields possible.
The fund uses a strategy called cash-and-carry arbitrage, which is a fancy way of saying it profits from price differences between the spot market (where you buy Bitcoin) and the futures market (where you bet on future prices)—coinbase plans to add more ways to boost earnings later, including lending and options trading.
But don’t worry—it’s not a feature with extremely high risk. Coinbase clarified that they won’t do risky things like unsecured Bitcoin lending or mindlessly selling options. They also use third-party custodians to hold the assets, which helps reduce the chance of losing funds due to counterparty issues.
Coinbase has announced the launch of x402, a new open-source payments protocol designed to streamline crypto transactions using familiar HTTP internet standards. According to Coinbase, x402 aims to make digital payments faster, more secure, and easier to integrate for developers and businesses alike.
By building on HTTP rails—the same backbone that powers the web—x402 allows crypto payments to function more like traditional online payments, while still taking advantage of blockchain technology. This move reflects Coinbase’s broader push to improve Web3 infrastructure and lower the barriers for real-world crypto adoption.
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⚡️BREAKING: As per Bloomberg, Coinbase Asset Management launches Coinbase Bitcoin Yield Fund on May 1, targeting 4-8% annualized net return in Bitcoin for non-US institutional investors.
We are excited to introduce x402–a new open source payments protocol built on HTTP rails. Let’s break it down:
