Coinbase Tests Flipcash's USDF in Custom Stablecoins Initiative

Coinbase Experiments With Flipcash’s USDF as It Rolls Out Custom Stablecoins

Coinbase has initiated backend testing for Flipcash's upcoming stablecoin, USDF, as part of a larger strategy aimed at allowing businesses to create their own dollar-backed tokens through its platform.

Key Takeaways:

Coinbase is currently testing Flipcash's USDF as part of its Custom Stablecoins program.
This feature enables businesses to issue tokens backed by USDC for various payment and treasury activities.
Stablecoins are becoming a significant source of revenue for Coinbase.

This testing phase is associated with Coinbase Custom Stablecoins, a feature launched in December that provides companies the ability to create their own stablecoins backed by Circle’s USDC.

The program aims to help businesses earn rewards by leveraging token activities and facilitate seamless fund transfers across blockchains supported by Coinbase.

Coinbase Starts Internal Testing of USDF Stablecoin

“A new Coinbase Custom Stablecoin, USDF, has been activated for operational testing on Coinbase Exchange,” the company announced in a post on X on Tuesday.

Coinbase highlighted that this rollout is currently limited to internal testing, meaning trading, deposits, and withdrawals are not yet available.

Custom stablecoins are presented as instruments that offer companies enhanced management over payments and treasury functions.

Potential applications for these stablecoins include payroll systems, business-to-business transactions, cross-border payments, and internal liquidity management—efforts where traditional banking solutions may fall short due to speed or cost issues.

Flipcash is developing USDF, which is anticipated to make its public debut in early 2026. Once launched, USDF is expected to serve as the primary stablecoin within the Flipcash app, according to insiders familiar with the development.

Coinbase is not alone in exploring custom stablecoins; it is also collaborating with other projects. Companies like Solana-based self-custody wallet Solflare and decentralized finance platform R2 are partnering with Coinbase to develop their own branded stablecoin offerings using the same framework.

Coinbase’s initiative comes amid the ever-growing significance of stablecoins within its business strategy.

The exchange maintains a close alliance with Circle, the issuer of USDC, which is one of the most utilized dollar-pegged tokens in the crypto space. Through this partnership, Coinbase earns income from interest and fees linked to USDC transactions.

Stablecoins have become an important revenue stream for Coinbase, which reported nearly $247 million in revenue tied to stablecoins in the fourth quarter. This figure highlights how closely Coinbase's financial performance correlates with the expansion of dollar-backed tokens.

Stablecoin Transactions Reach $33 Trillion in 2025 with USDC Leading

According to data from Bloomberg compiled by Artemis Analytics, global stablecoin transaction volumes soared to $33 trillion in 2025, representing a 72% increase from the previous year.

USDC emerged as the most widely used stablecoin in terms of transaction volume, processing $18.3 trillion, while its competitor Tether’s USDT generated $13.3 trillion in volume, although USDT still holds the lead in market capitalization at $187 billion.

The spike in transaction activity followed the enactment of the GENIUS Act in July 2025, which served as the first comprehensive U.S. regulatory framework governing payment stablecoins.

Industry experts believe that this legislation has provided the legal clarity needed to foster wider institutional participation and global acceptance of stablecoins.

Reports also indicate that stablecoin utilization on the fintech platform Revolut experienced a marked increase in 2025, with payment volumes surging by approximately 156% year-over-year to around $10.5 billion, as digital dollars become increasingly popular in everyday transactions.