Coinbase is testing Flipcash’s in-development stablecoin, USDF, on its backend as part of a new feature that will allow businesses to issue their own branded, dollar-backed tokens.
The “Coinbase Custom Stablecoins” feature, first announced in December, will let businesses earn rewards on activity and move funds seamlessly across Coinbase-supported chains. The tokens will be collateralized by Circle’s USDC.
“A new Coinbase Custom Stablecoin, USDF, has been enabled on Coinbase Exchange for operational testing,” Coinbase wrote on X on Tuesday. “This is a backend test phase only. Trading, deposits, and withdrawals are currently unavailable. Stay tuned for more updates.”
Custom stablecoins are designed to give businesses greater flexibility for payroll, business-to-business payments, cross-border transactions, and treasury management.
Flipcash develops USDF
The USDF stablecoin is being developed by crypto infrastructure platform Flipcash and is expected to launch in early 2026. Once live, USDF will serve as the primary stablecoin on the Flipcash app.
Other companies, including Solana-focused self-custody wallet Solflare and decentralized finance platform R2, are also partnering with Coinbase to create their own customized stablecoin solutions.
Coinbase’s stablecoin operations currently rely on its partnership with issuer Circle, through which it lists USDC and earns interest and transaction fees.
Stablecoins key to Coinbase’s business model
The company generated nearly $247 million in stablecoin revenue in Q4 2025 and has been lobbying U.S. senators to ensure that stablecoin rewards are not limited by upcoming crypto market regulations.
The stablecoin market is currently valued at $312.6 billion, with the U.S. Treasury estimating in April that it could reach $2 trillion by 2028. Bloomberg recently projected that stablecoin payment flows could grow at a compound annual rate of 81%, reaching $56.6 trillion by 2030.
