$7.5B in Safe Stablecoins Gets a Regulated Yield Pitch
CoinShares has started offering its managed stablecoin yield strategies inside Safe smart accounts, letting Safe’s enterprise users allocate without handing their assets to a custodian.
Key Takeaways
- Safe enterprise users can allocate stablecoins to CoinShares
- CoinShares never takes custody or commits balance-sheet capital
- Safe accounts hold about $7.5 billion in stablecoins
- Exit speed depends on each underlying yield source
CoinShares announced the launch on October 14, naming Safe as the first enterprise distribution partner for its OnChain Strategies business and saying it plans to add wallets, exchanges and fintech platforms over time.
What CoinShares launched
The strategy itself dates from March 18, when CoinShares built it on Railnet, an orchestration layer from Paris-based Kiln that connects onchain and offchain sources of yield. CoinShares Asset Management runs it under EU licenses for funds, financial instruments and crypto-assets. What changed in October is the storefront. CoinShares has earned most of its recurring revenue from exchange-traded products sold through brokers and advisers; now it is selling directly inside the accounts where clients already keep their stablecoins.
Access is limited to Safe’s enterprise users, a group CoinShares says includes the Ethereum Foundation and Circle. The announcement does not disclose fees, minimum allocations, eligible jurisdictions or a target return.
| Party | Role |
|---|---|
| Safe | Smart-account layer where client assets already sit |
| CoinShares | Designs the strategy, sets its risk limits, earns fees on delegated assets |
| Railnet (Kiln) | Onchain operating infrastructure, plugged in through Kiln’s existing Safe integration |
| Client | Decides whether to allocate stablecoins from its Safe account |
How the money moves without CoinShares holding it
Clients allocate stablecoins from their Safe accounts into smart contracts that CoinShares manages, and CoinShares says they keep ownership and control of their assets throughout. The firm earns recurring fees on the assets delegated to those contracts. It takes no custody and commits no balance-sheet capital, so none of CoinShares’ own money sits in the strategy alongside clients’.
The setup works like an onchain vault. As described to Markets Media after the March launch, a smart contract takes the place of a fund’s corporate structure, while a curator chooses the markets and manages the risk. For a treasury team, the practical questions are what its Safe signers approve, whether that delegation can be revoked at any time, and which contracts can move the funds once it is granted. The October announcement leaves those details to the client documentation.
Several sources of yield, several exit routes
The March announcement described a strategy spread across six sources of yield. CoinShares said Railnet was built to handle everything from DeFi’s instant liquidity to the redemption windows of tokenized real-world assets, and that range decides how fast a client gets stablecoins back. CoinShares states that redemptions follow the liquidity and settlement mechanics of the underlying strategies.
DeFi lending
Pays with borrowing demand. Usually quick to exit, but withdrawals can stall when a pool is fully lent out.
Institutional secured lending
Depends on borrower and collateral quality. Exit follows the loan’s terms.
Tokenized bond funds and ETFs
Tracks short-term fixed-income markets. Exit follows each product’s dealing schedule.
Delta-neutral basis trades
Captures price gaps between markets. Exit means unwinding both legs, which costs more in stressed markets.
The pool CoinShares is chasing
Safe smart accounts hold more than $60 billion across 63 million accounts, CoinShares said, including about $7.5 billion in stablecoins, or roughly 2.5% of the $300 billion stablecoin market. That balance is a target, not CoinShares money: only the enterprise slice is eligible, and none of it is committed. It is the kind of onchain dollar float that could shape crypto’s next growth phase.
CoinShares pitches the business as capital-light. A small internal team built the platform, and the company says each new distribution partner can be added without materially raising costs, so revenue can grow faster than expenses if clients sign up.
The numbers clients will judge it on are still missing: fees, minimums, net returns after costs, and how redemptions hold up when a lending pool or basis trade comes under stress. Until those appear, Safe has given CoinShares a shop window rather than a book of assets.
This article is provided for informational purposes only and does not constitute investment, legal or tax advice. Onchain strategies can involve market, smart-contract, counterparty, liquidity and operational risks.
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 5,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
