Coinbase Asset Management and Apollo Global Management Unite
Coinbase Asset Management (CBAM), the institutional division of Coinbase Global, has entered into a landmark partnership with Apollo Global Management to develop credit investment strategies centered on stablecoins. The initiative, set to launch in 2026, combines Apollo’s experience in private credit with Coinbase’s growing influence in digital-asset markets.
The alliance aims to integrate three financial pillars: stablecoins, private lending, and tokenization, to create new, blockchain-native credit opportunities. Anthony Bassili, President of Coinbase Asset Management, described it as an opportunity to connect digital markets with traditional credit frameworks.
“Stablecoins have reached $300 billion in market capitalization as of October 2025, with projections to hit $3 trillion by 2030 amid GENIUS Act tailwinds,” Bassili said. He noted that blockchain infrastructure allows lending and settlement, “not possible in traditional credit systems,” creating constant liquidity and transparency.
How the Credit Model Works
The plan is built on three main lending ideas:
- •The first involves over-collateralized asset lending, where borrowers use digital assets, such as bitcoin or tokenized funds, as collateral. Loans would be arranged under tri-party agreements to lower counterparty risk.
- •The second is corporate direct lending, which focuses on extending credit to both established and digital-first firms, such as stablecoin issuers, payment processors, and fintech companies. Each loan will be secured with digital collateral tracked on-chain.
- •The third pillar is tokenized credit holdings, a model that lets investors buy exposure to Apollo-managed credit portfolios in digital form. These instruments, issued through Coinbase’s tokenization tools, are meant to add liquidity and simplify access to yield products.
All offerings will comply with GENIUS Act requirements, including monthly audits and full reserve backing.
Apollo’s Broader Digital Push
Apollo has spent the past two years expanding its presence in blockchain finance. It partnered with Securitize, a platform backed by BlackRock, to issue tokenized credit products and invested in Plume Network, a firm focused on real-world asset tokenization.
Christine Moy, Apollo’s partner and head of digital assets, data, and AI strategy, said the tie-up with Coinbase fits the company’s long-term digital roadmap.
“Partnering with CBAM accelerates our vision of tokenizing credit markets,” she said. It “demonstrates how Apollo’s credit expertise and tokenization strategy can power new forms of yield generation and access within the expanding stablecoin ecosystem.”
The cooperation reflects Apollo’s growing conviction that tokenized finance will ultimately converge with conventional capital markets, forming an ecosystem where both coexist side by side.
Stablecoins Move Into the Mainstream
The timing of the announcement coincides with the rapid expansion of the stablecoin market. The dollar-linked tokens, such as USDT, USDC, and PYUSD, now handle billions of dollars in daily transactions.
Coinbase’s broader business strategy also supports this trend. The exchange recently teamed up with Citi to improve digital payment services for institutional clients. The project encompasses fiat-to-stablecoin conversions and payment flows across over 90 countries.
Brian Foster, Coinbase’s global head of crypto services, said the union with Citi helps build “the infrastructure needed for the next generation of financial services.” Citi’s payments chief Debopama Sen described Coinbase as a natural partner, noting that the bank’s “network of networks” model aligns well with on-chain systems that operate without time limits.
These moves suggest Coinbase is no longer acting solely as an exchange but as a player building core financial tools for global markets.
China Sounds Alarm on Stablecoin Growth
However, these developments arrive as China’s central bank sounded a sharp warning about the rapid rise of these dollar-linked tokens. At the 2025 Financial Street Annual Meeting, Pan Gongsheng, Governor of the People’s Bank of China (PBOC), said coins such as USDT and USDC create “serious loopholes” in the world’s financial order.
Pan warned that they could allow capital to move across borders unseen, weaken national control over money flows, and complicate anti–money laundering efforts. He also noted that the rapid growth of foreign-denominated stablecoins could make it more challenging for governments to manage their interest rates and domestic money supply.
The remarks underscore a widening policy divide: while Western institutions view stablecoins as a channel for innovation in credit and payments, Beijing sees them as a potential threat to financial sovereignty.