Coinbase and Spiko Unlock 24/7 Stablecoin Access to Europe’s Regulated UCITS Funds

Key Takeaways:

• Coinbase and Spiko introduced Europe’s first payment pathway for UCITS funds based on the stablecoin.
• It is possible to buy and redeem shares with USDC and EURC 24/7 with the help of the Coinbase Payments system.
• The integration replaces settlements that can last days with almost instant fund transfers.

User Score

8.7

Navigate, as is typical, in a major stride into regulated finance with Stablecoins. Coinbase and Spiko have unveiled a new payment system for institutional investors that will enable them to subscribe to and redeem European UCITS money market funds via stablecoins, dramatically cutting out days-long settlement times.

The release is one of the most explicit to date of stablecoins transitioning from crypto trading into regulated financial offerings.

Coinbase announced that its payment infrastructure now powers stablecoin funding for Spiko’s EU and U.S. Treasury Bills Money Market Funds. The integration allows investors to enter and exit regulated UCITS funds using USDC and EURC almost instantly instead of relying on conventional banking rails.

Transactions are processed through Coinbase Payments and settled on Base, Coinbase’s Ethereum Layer-2 network, enabling round-the-clock capital movement, including weekends and public holidays.

The rollout solves one of the largest inefficiencies in traditional asset management: settlement delays in which investor capital is in limbo for several business days.

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Coinbase reported that real-time settlement has been a top priority for institutional investors for many years. According to a recent EY-Parthenon/Coinbase survey, 88% of institutional investors believe that securities settlement (T+0) is one of the most appealing use cases of stablecoins.

Investors no longer need to wait for banking hours to transfer idle outflows of USDC and EURC into the Treasury-backed money market funds, and vice versa, as they can buy and sell positions at any hour and even in less than 1 minute.

The partnership is important as the UCITS funds are among the most regulated and structured types of investments available in Europe and are favoured among both retail and institutional investors in the region.

The collaboration goes beyond mere tokenization of financial assets and instead highlights a way to enhance the fund−of−funds process as capital flows in and out of regulated assets. According to Coinbase, this offers a solution to the persistent issue of “trapped capital” caused by delays in settlement that impair liquidity and flexibility of the operations.

Wallet infrastructure, automated payment APIs, and blockchain settlement are all rolled into a single workflow optimised for institutional treasury operations, but also complies with compliance expectations from European regulators.

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Coinbase’s partnership also underscores the firm’s long-term plan to take down stablecoins as financial infrastructure and not speculative products.

In addition to helping users sign up and redeem, Coinbase Payments offers automated capital flows, secure wallet services and API likewise integrations that enable establishments to manage treasury functions in programmable manner.

Base acts as a settlement layer which provides cheaper transactions while also ensuring faster transfers.

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