Coinbase launched a second Stablecoin Bootstrap Fund to provide additional liquidity for the DeFi ecosystem via USDC.

According to an Aug. 12 announcement, the initiative will target protocols across multiple blockchains, starting with Aave, Morpho, Kamino, and Jupiter. Coinbase also invited protocols seeking liquidity to reach out to the exchange. 

The fund represents Coinbase’s renewed commitment to accelerating stablecoin adoption across mature and emerging protocols after its original 2019 Bootstrap Fund.

Time for growth

Coinbase’s first Bootstrap Fund helped establish marketplaces for USDC across blue-chip DeFi protocols such as Uniswap, Compound, and dYdX during the early stages of DeFi development.

Notably, USDC has become the leading stablecoin in DeFi with an estimated $8.9 billion in total value locked (TVL) and $2.7 trillion in annual on-chain transaction volume.

A Coinbase spokesperson explained in a note that the timing reflects current market conditions and growth opportunities:

“We’re at an inflection in adoption of onchain financial services. We saw how successful the first fund was in helping drive the initial wave of onchain stablecoin liquidity, and saw an opportunity to leverage Coinbase’s resources to further accelerate the interest and adoption that we’re seeing today.”

The record-breaking $40.7 billion in active DeFi loans represents one factor motivating the fund’s launch.

However, the spokesperson noted crypto-backed loans constitute “a prime example of this adoption and ongoing growth, but not the only reason” for the initiative.

The fund seeks to ensure deeper liquidity for stablecoins across the on-chain ecosystem, enabling users to access reliable rates across both established and emerging protocols.

Scaling over time

Coinbase plans to scale the fund over time and distribute liquidity across additional protocols and stablecoins beyond the initial four recipients. The launch can have a direct and positive impact on USDC usage in DeFi.

Adding more liquidity to the largest decentralized money markets will decrease the borrow rate for USDC on those venues, potentially making the stablecoin more interesting for on-chain leverage. The fund could also bring more money on-chain.

Lastly, the company expressed particular interest in collaborating with pre-launch teams or projects seeking to drive stablecoin growth from inception. 

The spokesperson concluded:

“We believe now is the time to build, and the Stablecoin Bootstrap Fund is here to inject liquidity in projects that can make an impact on the ecosystem no matter the size.”

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A bank insider and his co-conspirator admitted to running a nine-year fraud scheme that falsified loan applications to obtain funds. 

In a press release, the U.S. Attorney’s Office for the Southern District of Illinois says that former Tempo Bank senior loan officer Francis Eversman and construction company owner Gregg Crawford pleaded guilty to conspiracy to commit bank fraud in a scheme that spanned between 2011 and 2020. 

Prosecutors say that Crawford recruited straw purchasers to serve as loan applicants in name only for properties that were often extremely overvalued. His brother-in-law, Eversman, would facilitate the approval process of the loans. 

Crawford used the proceeds of the loans for purposes other than the purchase of the properties. He also provided fake lease agreements in an effort to show rental income from the properties in question.

When the Office of the Comptroller of the Currency became suspicious of the loans during an audit, Crawford told a straw purchaser to provide the regulator with fraudulent information. 

FBI Springfield Assistant Special Agent in Charge Karen Marinos says the duo violated the people’s trust by carrying out self-serving schemes to increase their wealth.

“Every American citizen deserves to walk into their bank and trust the people behind the counter. In southern Illinois, these people are usually our neighbors and friends, people that we trust with our money and wellbeing. “

Eversman and Crawford will be sentenced on October 14th. They face up to 30 years in prison, five years of supervised release and fines of up to $1 million.

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The Bank of America reportedly made a mistake with a customer’s loan and ended up suing her because of it.

Diane Jaques, a 75-year-old homeowner in Concord, Massachusetts, was sued by the Bank of America after the financial institution accidentally discharged her loan prematurely, reports local Boston public news outlet WBUR.

“It’s ridiculous. It’s their mistake…

I’ve never missed a payment. I get the bill every month and I pay it.”

According to the lawsuit, she and her husband originally took out a $200,000 home equity line of credit from FleetBoston Financial, which later merged with Bank of America. Her husband has since died.

After the merger, Bank of America says it took steps to clean up FleetBoston’s paperwork on some 16,000 mortgages. However, in the process, Bank of America erroneously discharged Jaques’ mortgage, among others.

To correct the error, the bank asked Jaques to sign certain documents. Jaques says the process became such a hassle, including having to get papers notarized by a notary public, that she gave up on it, only to later learn Bank of America was now suing her over the matter.

Jacques, a semi-retired insurance agent, says,

“How can this even be allowed? It’s very shocking. It’s the last thing I need.”

In the end, Bank of America dropped the lawsuit this month after Jaques signed the necessary documents.

Says Jaques,

“I am done with Bank of America. This has been a nightmare.”

Bill Halldin, a Bank of America spokesperson, says that the bank contacted customers for permission to refile the mortgage paperwork to fix the loans mistakenly discharged. If homeowners didn’t respond or did not complete the process, the bank sued. Jaques is one of more than 100 homeowners in Massachusetts who were sued over the loan issue.

Says Halldin,

“Filing the lawsuits was the only way to ask the court to correct the record if homeowners didn’t voluntarily agree to the correction.”

According to Halldin, the bank will cover the cost of correcting the records with local registries as well as public notary services. However, the bank does not plan to reimburse attorney’s fees incurred by homeowners who hire a lawyer to handle the lawsuit.

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Swedish health technology company H100 Group has received 144.8 BTC as part of a settlement related to the convertible loan agreement, according to a company’s press release issued Monday. With this latest deal, the Stockholm-based company holds a total of 169.2 BTC on its balance sheet.

144.8 BTC was transferred as part of the first four segments of the H100 loan agreement. This has been well received by investors up until now. In its release, H100 Group AB (“H100 Group” or “Company”) received 144.8 BTC as part of tranches 1-4 revenues under the previously announced convertible loan agreement.”

This follows a recent report that Blockstream CEO Adam Back has pledged to lead H100’s 750 million Kronor (~$79 million) funding initiative. Fixed with 150 million Krona injections in Tranche6.

The loan structure includes the flexibility of either cash or Bitcoin settlements. This will allow counterparties to choose BTC delivery, reduce Fiat friction and line up with the company’s long-term finance ministry’s outlook.

“Unexpectedly, given the strong reception, Tranche 1-4 quickly became money,” Buck told Koindsk. “(H100) expected them to convert over time when they reached their status in money.”

This financing approach allows the H100 to bypass traditional rights issues while carrying capital in a flexible way. Tranches 7 and 8 are on deck, with more room for size depending on the appetite of the market.

This also reflects the evolving financial strategy of the H100. While the company’s core business continues to focus on AI-driven health and longevity services, Bitcoin’s growth position is reshaping the way it raises, stores and deploys capital. As of now, the company’s BTC Holdings is 169.2 BTC from just 24.41 BTC prior to this latest tranche execution.

H100 shares rose 22% on Monday in response to developments.

The company is uniquely positioned at the intersection of health technology and decentralized finance as it continues to negotiate with future tranches and explores adoption of BTC as the backbone of finance.

Two of the largest banks in the US are reportedly locked in a legal battle over a $481 million commercial property loan.

Wells Fargo is suing JPMorgan Chase, the largest back in the US, over accusations it greenlighted a real estate loan even though it allegedly knew that the financial statements were fraudulent, reports Reuters.

In 2019, JPMorgan issued a loan to real estate development and investment firm Chetrit Group to finance the purchase of 43 multi-family buildings with 8,671 apartments across 10 states.

Acting as the investors’ trustee, Wells Fargo alleges that JPMorgan and Chetrit knew that the sellers had fraudulently inflated the buildings’ historical net operating income by 25% even before closing the deal at $522 million.

A property’s historical net income is a financial metric that measures the income generated by a building over a specific time frame. A property’s past earnings are typically used to assess its potential value.

Wells Fargo claims that JPMorgan approved the overvalued property deal to reap millions of dollars in fees, thinking that the assets would eventually be dumped on investors who wouldn’t realize the buildings were not as profitable as declared on paper.

Chetrit’s loan turned sour in 2022 and, in the process, Wells Fargo says investors in the trust have lost tens of millions of dollars.

“[JPMorgan] had an obligation to engage in due inquiry to determine the scope of the fraudulent reporting. Instead, [JPMorgan] plowed ahead as if nothing unusual had happened without even bothering to correct known errors in the numbers.”

Wells Fargo is asking the court to order JPMorgan to either pay for damages or repurchase the loan and make the investors whole.

JPMorgan and Chetrit have not yet issued a statement regarding the case.

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