Coinshift’s csUSDL yield-bearing stablecoin surpasses $100 million in TVL

Just four months after its launch in January, Coinshift’s csUSDL yield-bearing stablecoin has surpassed $100 million in total value locked (TVL)

Coinshift’s yield-bearing stablecoin, csUSDL, has hit $100 million in total value locked (TVL) just four months after its launch in January, according to DeFiLlama data.

The milestone follows the recent growth of fiat-pegged assets that offer passive income through decentralized finance protocols. In a statement shared exclusively with The Block, Coinshift added that csUSDL also generated $16 million in trading volume within 30 days on Pendle, a DeFi platform that specializes in yield assets.

Built on Ethereum, csUSDL earns yield through a combination of onchain lending and exposure to U.S. Treasury bills. It is structured atop USDL, a stablecoin issued by Paxos International and regulated in Abu Dhabi.

Following the recent growth, Coinshift has added Paxos Gold — a tokenized version of the precious metal — as supported collateral for csUSDL. The company said the move aims to expand access to traditional assets within permissionless ecosystems and increase the token’s utility.

The TVL milestone comes as we’ve recently reported on the growing demand for fiat-pegged offerings that provide residual income via decentralized finance (DeFi) protocols. As we previously noted, Tarun Gupta, Coinshift founder and CEO, said the asset manager has seen a great deal of interest in stablecoins with yield features.

“Retail investors and institutions are increasingly looking for secure, transparent access to real-world yield without the usual friction of onchain strategies,” Gupta said in a statement.

csUSDL faces stiff competition in the $5.5 billion yield stablecoin market. Leading players include sUSDS from Sky (formerly MakerDAO), Ethena’s USDe, and Ondo Finance’s USDY, which collectively hold around $5 billion in market capitalization.

CoinShift launched its DeFi treasury management startup in June 2021. Two months later, in September, it announced that it had raised $2.5 million in seed funding. In May 2022, the firm closed a $15 million Series A fundraising round led by Tiger Global. The company now has over 300 clients, including names like Aave, and manages more than $1.3 billion in assets.