Coinbase Explores Custom Stablecoins with Flipcash’s USDF
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 and 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.
Coinbase’s Stablecoin Business Model
Coinbase’s stablecoin business currently leans on its partnership with stablecoin issuer Circle, through which it lists USDC and earns interest and fees. 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.
Market Outlook and Growth
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. As the market continues to evolve, companies like Coinbase are poised to play a significant role in shaping the future of stablecoins.
Smart Tip for Readers
To stay ahead of the curve in the rapidly evolving stablecoin market, it’s essential to regularly review and understand the terms and conditions of any stablecoin service you use, including how your assets are collateralized and managed. For more information on Coinbase’s custom stablecoins and the latest developments in the crypto market, visit Here
