Coinbase has begun backend testing of Flipcash’s in-development stablecoin, USDF, as part of a broader push to let businesses issue their own branded, dollar-backed tokens through its platform.
Key Takeaways:
- Coinbase is internally testing Flipcash’s USDF under its Custom Stablecoins program.
- The feature lets businesses issue USDC-backed tokens for payments and treasury use.
- Stablecoins remain a major revenue driver for Coinbase.
The test is tied to Coinbase Custom Stablecoins, a feature introduced in December that allows companies to create proprietary stablecoins collateralized by Circle’s USDC.
The program is designed to let businesses earn rewards tied to token activity while moving funds across Coinbase-supported blockchains without friction.
Coinbase Begins Internal Testing of USDF Custom Stablecoin
“A new Coinbase Custom Stablecoin, USDF, has been enabled on Coinbase Exchange for operational testing,” the company said in a post on X on Tuesday.
Coinbase stressed that the rollout is limited to internal testing, with trading, deposits and withdrawals currently disabled.
Custom stablecoins are being pitched as tools that give companies greater control over payments and treasury operations.
Potential use cases include payroll, business-to-business settlements, cross-border transfers and internal liquidity management, areas where traditional banking rails can be slow or costly.
The USDF stablecoin is being developed by crypto infrastructure firm Flipcash and is expected to launch publicly in early 2026.
Once live, USDF is set to become the primary stablecoin used within the Flipcash app, according to people familiar with the project.
Flipcash is not the only firm working with Coinbase on custom stablecoins.
Solana-based self-custody wallet Solflare and decentralized finance platform R2 are also collaborating with the exchange to develop branded stablecoin products using the same framework.
Coinbase’s push comes as stablecoins continue to play a central role in its business model.
The exchange maintains a close partnership with Circle, the issuer of USDC, which remains one of the most widely used dollar-pegged tokens in the crypto market.
Through that relationship, Coinbase earns a share of interest income and fees tied to USDC usage.
Stablecoins have become a significant revenue driver for the company. Coinbase reported nearly $247 million in stablecoin-related revenue in the fourth quarter, underscoring how closely its financial performance is tied to the growth of dollar-backed tokens.
Stablecoin Transactions Hit $33 Trillion in 2025 as USDC Leads Usage
Global stablecoin transaction value reached $33 trillion in 2025, marking a 72% increase from the previous year, according to Bloomberg data compiled by Artemis Analytics.
USDC emerged as the most-used stablecoin by transaction volume, processing $18.3 trillion, while Tether’s USDT handled $13.3 trillion, despite maintaining its lead by market capitalization at $187 billion.
The surge in activity followed the passage of the GENIUS Act in July 2025, the first comprehensive U.S. regulatory framework for payment stablecoins.
Industry participants say the legislation has provided legal certainty that encouraged broader institutional and global adoption.
As reported, stablecoin usage on fintech platform Revolut also accelerated sharply in 2025, with payment volumes estimated to have climbed 156% year over year to roughly $10.5 billion, as digital dollars gain ground in everyday payments.
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