Coinbase conducts testing on Flipcash’s USDF stablecoin in conjunction with rollout of custom stablecoins

Coinbase has begun retesting Flipcash’s developing stablecoin, called USDF, as part of a broader initiative to allow companies to issue their own branded dollar-backed tokens through its platform.

Most important key points:

• Coinbase is testing Flipcash USDF internally within its dedicated stablecoin program.
• This feature allows companies to issue USDC-backed tokens for payment and cash management purposes.
• Stablecoins remain a major source of revenue for Coinbase.

The test is related to Coinbase’s Custom Stablecoins, a feature rolled out in December that allows companies to create private stablecoins topped with Circle’s USDC.

The program is designed to allow businesses to earn rewards tied to token activity while seamlessly moving funds between Coinbase-backed blockchains.

Coinbase has begun internal testing of its custom USDF stablecoin

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

Coinbase has confirmed that the launch is limited to internal testing, with trading, deposits and withdrawals currently disabled.

Dedicated stablecoins are touted as tools for businesses to better control payments and treasury operations.

Potential use cases include payroll, trade settlements, cross-border transfers and internal liquidity management, areas where traditional banking channels can be slow or expensive.

The USDF stablecoin is developed by cryptocurrency infrastructure company Flipcash and is expected to launch publicly in early 2026.

According to people close to the project, USDF, once launched, is expected to become the primary stablecoin used in the Flipcash app.

Flipcash isn’t the only company working with Coinbase on custom stablecoins.

Solana-based self-custodial wallet Solflare and DeFi platform R2 are also collaborating with the exchange to develop branded stablecoin products using the same framework.

This trend from Coinbase comes at a time when stablecoins continue to play a central role in its business model.

The exchange maintains a close partnership with Circle, the issuer of USDC, which remains one of the most widely used dollar-pegged digital currencies in the cryptocurrency market.

Through this relationship, Coinbase earns a share of the interest income and fees associated with using USDC.

Stablecoins have become an important source of revenue for the company. Coinbase reported revenue of approximately $247 million from stablecoins in the most recent quarter, highlighting how its financial performance is closely tied to the growth of dollar-backed tokens.

Global stablecoin transactions will reach $33 trillion in 2025, with USDC topping the list of most used currencies.

The value of global stablecoin transactions reached $33 trillion in 2025, an increase of 72% from the previous year, according to Bloomberg data compiled by Artemis Analytics.

USDC became the most widely used stablecoin in terms of trading volume, processing $18.3 trillion, while Tether’s USDT processed $13.3 trillion, while maintaining its market cap lead at $187 billion.

This surge in activity was followed by the July 2025 passage of the GENIUS Act, the first comprehensive regulatory framework in the United States for payment stablecoins.

Industry participants say the legislation has provided legal certainty that has encouraged its wider adoption at institutional and global levels.

As reported, the use of stablecoins on fintech platform Revolut accelerated sharply in 2025, with payment volumes estimated to have increased 156% year-over-year to around $10.5 billion, as digital dollars gain traction in everyday payments.

The article Coinbase Conducts Tests on Flipcash’s USDF Stablecoin in Conjunction with Custom Stablecoin Launch appeared first on Cryptonews Arabic.