Coinbase is quietly piloting Flipcash’s in-development stablecoin, USDF, on its backend as part of a broader push to let businesses issue branded, dollar-backed tokens. The feature, dubbed Coinbase Custom Stablecoins, debuted in December and is designed to reward user activity and move funds seamlessly across Coinbase-supported chains, with tokens collateralized by Circle’s USDC. In a backend-only testing phase, Coinbase said that trading, deposits, and withdrawals are not yet available, and that USDF is expected to roll out on the Flipcash app as the primary stablecoin in early 2026. The initiative highlights Coinbase’s intent to broaden the role of stablecoins from payments to programmable treasury tools for merchants.
Key takeaways
- Coinbase has enabled operational testing for USDF (CRYPTO: USDF) on its exchange backend, with trading, deposits, and withdrawals currently unavailable.
- The stablecoin is developed by Flipcash and is slated to become the primary token within the Flipcash app, penciled in for an early 2026 launch.
- Coinbase’s Custom Stablecoins program ties branded tokens to Circle’s USDC (CRYPTO: USDC), enabling cross-chain movement and potential rewards for participants.
- Solflare, a Solana-based self-custody wallet, and R2 are collaborating with Coinbase to introduce customized stablecoin solutions across ecosystems, expanding options for developers and merchants.
- Market context remains favorable for programmable money: stablecoins sit in a multihundred-billion-dollar regime, with ongoing regulatory and policy discussions shaping how rewards and interoperability evolve.
Tickers mentioned: $USDF, $USDC, $SOL
Sentiment: Neutral
Market context: The broader macro and regulatory backdrop continues to influence stablecoin development, with policymakers weighing market structure bills while interest grows in merchant-focused tokenized solutions and cross-chain interoperability.
Why it matters
The move signals a deeper push by a leading crypto platform to turn stablecoins into programmable tools for businesses. By enabling branded, dollar-backed tokens that can be collateralized by USDC and moved across multiple chains, Coinbase is positioning itself at the intersection of payments, treasury management, and cross-border commerce. The concept of Custom Stablecoins aims to unlock use cases ranging from employee payroll and supplier payments to complex treasury operations and hedging strategies, reducing frictions typically associated with multi-network settlements.
At the core is the idea of a turnkey framework for developers and merchants. If a business wants to issue its own dollar-backed token, it could rely on Coinbase’s infrastructure to manage collateral, compliance considerations, and distribution. The approach benefits from Circle’s stablecoin infrastructure, which lends a familiar level of liquidity and trust for tokenized dollars while leveraging Coinbase’s global distribution reach. The partnership also aligns with a broader trend of exchanges expanding beyond custody and trading into tokenized assets and programmable money, a space that has drawn both excitement and regulatory scrutiny.
In tandem with USDF’s testing, Coinbase notes that the broader stablecoin market remains sizable and dynamic. Data aggregator CoinGecko places the stablecoin sector in the hundreds of billions, while policy projections from authorities hint at a future in which stablecoins may play a larger role in everyday commerce, provided frameworks protect users and ensure market integrity. The strategic emphasis on rewards and cross-chain interoperability suggests Coinbase’s ambition to create a more connected and incentives-driven ecosystem for merchants and developers alike.
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— Coinbase 🛡️ (@coinbase) December 17, 2025
Coinbase’s stablecoin operations have to date leaned on a close partnership with Circle to list USDC and generate yield and fees from the reserve-backed asset. The USDF test underscores a broader push to convert stablecoins from simple payment rails into programmable financial instruments that can support business workflows and cross-network liquidity. The rollout aligns with ongoing industry discussions about how stablecoins should be regulated and integrated into broader financial markets, including considerations around rewards programs and how they interact with evolving crypto market structure legislation.
What to watch next
- Progress updates on the operational testing of USDF in Coinbase’s backend and any announcements about when trading, deposits, and withdrawals might commence.
- Clarity on early-2026 timelines for USDF’s public availability on Flipcash and how merchants can adopt branded stablecoins.
- Additional ecosystem collaborations with other networks, such as Solana (SOL)–based tools, and how these integrations affect cross-chain workflows and rewards.
- Regulatory developments around stablecoins and potential policy measures that could influence reward structures or interoperability requirements.
- Updates on Coinbase Custom Stablecoins’ product features, including governance, compliance checks, and eligibility criteria for issuing brands.
Sources & verification
- Official Coinbase announcements on USDF testing and the Coinbase Custom Stablecoins feature, including X posts and status updates from Coinbase Markets.
- Public communications from Flipcash regarding the USDF stablecoin development and the expected early-2026 launch.
- References to Circle’s USDC as the collateral asset and its role in the ecosystem, as discussed in related Coinbase materials.
- CoinGecko and market data regarding the current size of the stablecoin category and expert analyses on long-term growth projections.
- Q3-25 shareholder materials and other Coinbase disclosures referenced in the coverage of stablecoin revenue and policy considerations.
What the announcement changes
The trial of USDF on Coinbase’s backend signals a broader method to embed branded stablecoins within a merchant-oriented framework. If successful, businesses could issue customized stablecoins with 1:1 collateral secured by USDC, enabling a richer set of financial tools while maintaining the stability characteristics essential to dollar-denominated tokens. The ability to reward activity and ensure cross-chain operability could create a more attractive value proposition for merchants seeking to streamline payroll, B2B payments, and cross-border settlements inside crypto-native ecosystems.
From a market perspective, the move contributes to an ongoing shift toward programmable money and tokenized financial services. The stablecoin market’s size and its projected growth—combined with rising attention from policymakers—mean that practical, compliant use cases for branded stablecoins may become more common in the medium term. As Coinbase, Flipcash, and ecosystem partners push forward, observers and participants will be watching how these tokens perform at scale, how liquidity is managed, and how rewards structures shape merchant and consumer adoption across different chains and networks.
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