Coinbase moves closer to deploying 'Custom Stablecoin'

Coinbase is testing the USDF stablecoin developed by Flipcash on its backend system, aiming to serve the Coinbase Custom Stablecoins feature that allows businesses to issue tokens backed by USD with their own branding. According to Coinbase, USDF is currently in the operational testing phase, not yet supporting transactions, deposits, or withdrawals.

Launched in December, Coinbase Custom Stablecoins help businesses earn rewards based on activity and facilitate seamless transfers between supported blockchains. These custom stablecoins will be collateralized by Circle’s USDC.

USDF is expected to launch in early 2026 and will become the main stablecoin on the Flipcash app. Additionally, the self-custody wallet Solflare and the DeFi platform R2 are also collaborating with Coinbase to develop their own stablecoin solutions.

Stablecoins are currently a key business area for Coinbase, with nearly $247 million in revenue in Q4, amid continued strong growth in the global stablecoin market.

Introducing Coinbase Custom Stablecoins.

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