How Coinshift Is Progressing the Stablecoin Space

Stablecoin and tokenized RWA markets are at all-time highs and show no signs of slowing down. Since the beginning of 2024, the total market cap is up 90% for stablecoins, crossing $250 billion, and up 167% to $23 billion for RWAs.

Some of the largest financial institutions in the world have joined the tokenization race, with the likes of Blackrock, Franklin Templeton, and Goldman Sachs all competing to lead the space. Currently, Blackrock and its tokenized money market fund BUIDL lead the pack with a $2.9 billion market capitalization.

While these traditional firms duke it out to put their existing products on-chain, DeFi-native builders have continued to innovate, issuing new products that stand to bridge the gap between institutional and decentralized finance.

Coinshift is a company pushing the envelope in the capital markets and stablecoin spaces through its institutional-grade stablecoin, csUSDL. On the market since January 2025, the asset has quickly surpassed $135M in TVL.

Coinshift’s csUSDL combines the yield of U.S. Treasury bills with on-chain lending returns via the Morpho lending protocol. The asset is built on top of USDL, a dollar-backed stablecoin issued by Paxos International and regulated by Abu Dhabi’s Financial Services Regulatory Authority (FSRA).

The csUSDL stablecoin holds an A+ risk rating from Credora on Morpho Vault – the lowest possible risk category – and offers a competitive APY, with real-time on-chain yield accrual and daily earnings updates. Risk management leader Steakhouse Financial is responsible for optimizing csUSDL’s asset allocation.

How to Mint csUSDL

Users can obtain USDL by swapping assets through a decentralized exchange (DEX) such as CoW Swap, which is then wrapped to an ERC-20 token (wUSDL) that can be used across DeFi.

In order to mint csUSDL specifically, the wUSDL holder can deposit their tokens into the Morpho vault and receive csUSDL in return. Through the ERC-4626 standard, the csUSDL tokens accrue value directly, and the asset’s yield compounds daily.

Part of a Bigger Picture

Coinshift’s Founder and CEO Tarun Gupta sees stablecoins as a clear example of product market fit, set to continue their parabolic growth due to their financial efficiency and accessibility, facilitating adoption.

According to Gupta, the growth of stablecoins is not driven solely by traders and institutional interest, but by businesses and merchants in underserved and underbanked countries, where issues with cross-border fees, slow settlement, and local currency debasement can be surmounted by transacting in USD-pegged stablecoins.

Gupta explains in a thread on X that stablecoins are much more than just better payment rails, a banking alternative, or even a lending and borrowing innovation:

“We're seeing all of these converge into something bigger: a financial system that's simultaneously more trustworthy than traditional finance (100% reserves or transparent over-collateralized fractional reserves, real-time auditing), more efficient (instant, global, cheap), and more innovative (composable, programmable). That's the trillion-dollar opportunity hiding in plain sight.”