cointelegraph.com
Coinbase is testing Flipcash’s in-development stablecoin, $USDF, on its backend as part of a new feature that will allow businesses to create their own branded, dollar-backed tokens.
The “Coinbase Custom Stablecoins” feature, introduced in December, will let businesses earn rewards on activity and allow them to move funds seamlessly between Coinbase-supported chains, with the tokens to be collateralized by Circle’s $USDC ($USDC).
“A new Coinbase Custom Stablecoin, $USDF, has been enabled on Coinbase Exchange for operational testing,” Coinbase posted to X on Tuesday, adding:
“This is a backend test phase only. Trading, deposits, and withdrawals are currently unavailable. Stay tuned for more updates.”
Custom stablecoins can offer businesses more flexibility across everything from payroll and business-to-business payments to cross-border transactions and treasury management.
Flipcash is behind the $USDF stablecoin
The stablecoin in testing, $USDF, is being created by crypto infrastructure platform Flipcash and is expected to be available in early 2026.
When launched, $USDF will be the primary stablecoin on the Flipcash app.
Solana-focused self-custody wallet Solflare and decentralized finance platform R2 are also working with Coinbase to launch customized stablecoin solutions of their own.
Introducing Coinbase Custom Stablecoins.
— Coinbase 🛡️ (@coinbase) December 17, 2025
Create a branded stablecoin for your business, backed 1:1 by collateral custodied by Coinbase.
→ Earn rewards on activity
→ Seamless interoperability across chains
→ Tap into Coinbase’s global distribution pic.twitter.com/DJ3Wcq4Zhn
Coinbase’s stablecoin business currently leans on its partnership with stablecoin issuer Circle, through which it lists $USDC and earns interest and fees.
Stablecoins key to Coinbase’s business model
Coinbase brought in nearly $247 million in stablecoin revenue in the fourth quarter and has been pushing US senators to ensure stablecoin rewards aren’t restricted by incoming crypto market structure legislation.
Related: Bitcoin’s real ‘Uptober’ moment might start in February: Here’s why
The stablecoin market currently sits at $312.6 billion, with the US Treasury estimating in April that it would reach $2 trillion by 2028.
Bloomberg predicted earlier this month that stablecoin payment flows would increase at a compound annual growth rate of 81% to $56.6 trillion through to 2030.
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