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- Coinbase tests USDF stablecoin for businesses with future public launch.
- USDF stablecoin is part of Coinbase’s Custom Stablecoins framework.
- Flipcash plans to integrate USDF stablecoin for its application.
Coinbase has launched internal testing for USDF, a new dollar-backed digital asset developed by Flipcash. The trial running on Coinbase Exchange systems is now restricted to backend validation. Trading, deposits, and withdrawals are not yet supported.
USDF, a stablecoin, is part of the Coinbase Custom Stablecoins system, a new initiative launched in December. The initiative is designed to empower businesses to issue their branded stablecoins pegged to USDC, issued by Circle. This enables companies to transact across blockchains and earn rewards for token activity. Coinbase is also determined to push efficiency to a higher level by providing a more affordable alternative to conventional banking systems.
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USDF Testing and Future Rollout Plans
The current stage of the USDF stablecoin is backend validation, during which Coinbase ensures that the functionality will be extended in the following phases. The USDF stablecoin is set to be publicly rolled out by the company at the beginning of 2026. One of the first companies to work on this project is Flipcash, which will use USDF as its primary stablecoin after launch. Other companies, such as Solflare, a wallet on Solana, and the decentralized finance platform R2, also use Coinbase for custom stablecoins.
Coinbase makes stablecoins such as USDF central to various financial activities, including cross-border transfers, business-to-business transactions, and internal liquidity management. The company underlines the benefits of stablecoins in the following areas: they help simplify processes and reduce the costs of traditional financial services.
Stablecoin Market Growth and Coinbase’s Role
Coinbase is still leveraging its relationship with Circle, the issuer of USDC, which has been a significant source of income for the exchange. Coinbase reported almost $247 million in earnings in Q4 2025 from stablecoin-related work, underscoring the considerable role of stablecoins in its business model.
The stablecoin market has been expanding rapidly internationally, and transaction volume is expected to reach $33 trillion in 2025, an increase of 72 percentage points over the previous year. USDC accounted for $18.3 trillion in transactions, and USDT accounted for $13.3 trillion. Institutions are beginning to adopt stablecoins as regulatory bodies strongly encourage them through the GENIUS Act, which was passed in July 2025. This has also not slowed market development, and analysts project that the stablecoin market will be worth up to $2 trillion by 2028.
The path Coinbase is following as it continues with USDF and its Custom Stablecoins structure will position it to occupy a massive space in the evolving stablecoin market and grow significantly over the coming years. By 2030, stablecoin payment flows could reach $56.6 trillion, underscoring the importance of such digital assets in the global financial framework.
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