Coinbase just launched CUSHY, a stablecoin credit fund targeting institutions and qualified investors. The fund offers exposure to public and private credit markets while leveraging tokenization's structural advantages. This move exposes the real fight happening in Washington over the Clarity Act.
Banks are pushing hard against stablecoin yield products because crypto platforms can offer returns on stablecoins that traditional finance can't match. When you tokenize credit instruments, you unlock efficiency gains. Those gains flow directly to users as yield. Banks lose that margin advantage.
The Clarity Act debate isn't really about consumer safety or regulation frameworks. It's about economics. If stablecoins become the rails for yield-bearing credit products, banks lose their monopoly on financial intermediation. Coinbase's move here signals that the industry isn't waiting for legislation. They're building the infrastructure now.
Institutional money is watching. When traditional investors can earn real returns through stablecoin-based credit strategies, the pressure on banks intensifies. The regulatory battle in Washington becomes just noise against market forces.