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Coinbase has begun internal testing of USDF, a stablecoin developed by crypto infrastructure firm Flipcash, as the exchange expands its platform that enables businesses to launch branded dollar-backed tokens.
The move, disclosed January 28, 2026, marks the latest addition to Coinbase’s custom stablecoin framework launched in December 2025, which allows companies to issue proprietary tokens collateralized by Circle’s USDC.
“USDF, which is a new Coinbase custom stablecoin is now live on the Coinbase Exchange for internal operational testing purposes.” the company said in a post on X on Tuesday.
Coinbase emphasized that the rollout remains limited to internal testing with trading, deposits, and withdrawals currently disabled as the Coinbase custom stablecoin system undergoes backend validation.
Custom stablecoins under the Coinbase custom stablecoin model are being positioned as tools that give companies greater control over payments, treasury flows, and liquidity management.
Potential use cases include payroll, business to business settlements, cross border transfers, and internal cash management areas where traditional banking infrastructure can be slow, expensive, or fragmented.
USDF is being developed by crypto infrastructure firm Flipcash and is expected to launch publicly in early 2026.
Once live, it is set to become the primary stablecoin used within the Flipcash app according to people familiar with the project further expanding real world adoption of the Coinbase custom stablecoin framework.
Flipcash is not the only company collaborating with Coinbase on Coinbase custom stablecoin products.
Solana based self custody wallet Solflare and decentralized finance platform R2 are also working with the exchange to develop branded stablecoins using the same Coinbase custom stablecoin architecture.
The expansion highlights Coinbase’s broader strategy to embed stablecoins deeper into enterprise finance, payments, and on-chain settlement layers.
The Coinbase custom stablecoin push comes as stablecoins continue to play a central role in the company’s business.
Coinbase maintains a close partnership with Circle, the issuer of USDC, one of the most widely used dollar pegged tokens in the crypto market.
Through this relationship, Coinbase earns a share of interest income and fees tied to USDC usage reinforcing the commercial importance of the Coinbase custom stablecoin ecosystem.
Stablecoins have become a major revenue driver for the exchange. 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 digital assets.
Global stablecoin transaction value reached $33 trillion in 2025, a 72% increase from the previous year according to Bloomberg data compiled by Artemis Analytics.
USDC led by transaction volume processing $18.3 trillion while Tether’s USDT handled $13.3 trillion despite retaining the largest market capitalization at $187 billion.
The surge followed the passage of the GENIUS Act in July 2025, the first comprehensive U.S. regulatory framework for payment stablecoins.
Industry participants say the law provided legal clarity that accelerated institutional adoption creating favorable conditions for initiatives like Coinbase custom stablecoin issuance.
Stablecoin usage also accelerated across fintech platforms. As reported, Revolut saw stablecoin payment volumes jump an estimated 156% year over year to roughly $10.5 billion in 2025 signaling growing everyday use of digital dollars.
