Coinbase Advances Testing of Custom Stablecoins for Businesses

Coinbase is moving closer to launching custom stablecoins, allowing businesses to issue their own branded, dollar-backed tokens on the platform. This initiative is part of the exchange’s ongoing effort to expand stablecoin use for payments, treasury management, and cross-chain transactions.

Custom Stablecoin Testing Underway

Coinbase is currently testing Flipcash’s in-development stablecoin, USDF, on its backend. Trading, deposits, and withdrawals are not yet available, as the phase is strictly for operational testing. USDF will be collateralized by Circle’s USDC, providing a dollar-backed foundation.

The feature, introduced in December 2025, is designed to let businesses earn rewards on activity and seamlessly move funds across Coinbase-supported chains. Flipcash plans to make USDF the primary stablecoin on its platform when it officially launches in early 2026.

Coinbase posted to X on Tuesday;

Partnerships and Industry Collaboration

Coinbase is collaborating with Solflare, a Solana-focused self-custody wallet, and decentralized finance platform R2 to develop additional custom stablecoin solutions. These partnerships aim to expand enterprise adoption of crypto payments and stablecoin-based financial services.

Stablecoins as a Core Business Driver

Stablecoins are a major revenue source for Coinbase, generating nearly $247 million in Q4 2025. The market is currently valued at approximately $312.6 billion, with projections estimating growth to $2 trillion by 2028. Bloomberg predicts stablecoin payment flows could reach $56.6 trillion by 2030, highlighting the strategic importance of this sector.

Coinbase’s custom stablecoins initiative reflects its focus on empowering businesses while strengthening its stablecoin ecosystem.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.