The chain a product runs on is a choice, and for a regulated fund it is not a small one.
Why Base
Base is an open, permissionless Ethereum L2 incubated at Coinbase. It is not a new frontier: over $4B of assets sit on the chain, stablecoin balances are of a similar size, and it is trusted by more than 1,000 businesses. For a product that lives inside a regulated fund, that company matters. We wanted the infrastructure around us to be familiar to compliance teams, custodians, and auditors rather than novel to them.
What We Needed From a Chain
Deposits arrive in cbBTC, and Coinbase issues cbBTC natively on Base. That removes a bridge from the path before anyone deposits, which counts for more in a diligence process than any fee schedule does. The second requirement was counterparties. A fund product deals with market makers, risk curators, and lending venues, and those firms work where the markets already are. On Base they run to billions of dollars. Neither of those is something we could have asked a chain to build for us.
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