The asset management arm of exchange giant Coinbase (COIN) is bringing its bitcoin performance fund on-chain, creating a tokenized share class of the fund with $3.5 trillion fund manager Apex Group.
The Coinbase Bitcoin Yield Fund, managed by Coinbase Asset Management (CBAM), will be available to investors on the Base network, Coinbase’s blockchain built on Ethereum. Apex remains the transfer agent and maintains records aligned with the fund’s net asset value.
The launch comes as global asset managers consider tokenization as the next frontier in the evolution of capital markets, making bonds, stocks and funds tradable on blockchain rails. Companies such as BlackRock (BLK), Fidelity and Franklin Templeton have introduced tokenized funds in recent years, aiming to speed up settlement times, reduce costs and open new distribution channels.
Brett Tejpaul, head of Coinbase Institutional, said the company’s asset management business already has a lot of institutional capital allocated, with many investors holding core positions in bitcoin and ether.
“Little by little, we are getting new capital coming into the space that wants the ability to earn compound returns, so their bet is not just on bitcoin appreciation, but while they wait for it to go up in price, they are earning returns along the way,” he told CoinDesk.
“The bitcoin yield fund allows them to do this by doing things like selling call options or entering into lending deals.”
Tokenized assets are potentially a multi-trillion-dollar market, with estimates ranging from McKinsey’s projection of $2 trillion by 2030 to BCG and Ripple’s $18.9 trillion target by 2033.
Apex, a major player in the fund services business that backs $3.5 trillion in assets, is also increasingly leaning toward tokenization. It acquired Tokeny last year, a specialist that facilitated the tokenization of more than $32 billion in assets. Apex also said it plans to tokenize $100 billion in funds using the T-REX Ledger by June 2027 to manage ownership and compliance across multiple blockchains.
In the case of the Coinbase Bitcoin Yield Fund, the tokenized share class uses the ERC-3643 token standard, which encrypts investor checks directly into the token. Only approved investors can hold or transfer the asset, with the identity linked to each wallet through a dedicated onboarding process.
The setup replaces manual compliance checks with automated rules. If a wallet is not deleted, the transaction fails. That could reduce friction in how institutional investors access and move fund positions.
The fund is available to non-U.S. investors, but CBAM said it also plans to create a tokenized share class of the U.S. version of the fund.
