Coinbase moves closer to custom stablecoins with USDF exchange testing

Stablecoins are increasingly being treated as a product layer that brands can build on, especially for payments and settlement. Companies want a dollar token they can brand, plug into payroll or payouts, and move across chains without rebuilding the plumbing. Coinbase is trying to be the one that sells that plumbing.

On Tuesday, Coinbase said a new custom stablecoin called USDF has been enabled on Coinbase Exchange for operational testing. The exchange stressed the rollout is strictly backend for now, with trading, deposits and withdrawals unavailable.

USDF is being built by crypto infrastructure firm Flipcash and is expected to launch in early 2026, where it will serve as the primary stablecoin inside the Flipcash app. Coinbase has also named Solana wallet Solflare and DeFi platform R2 as partners exploring similar branded stablecoin launches.

The test fits into Coinbase Custom Stablecoins, a stablecoin as a service product the company introduced in December. The idea is simple: a business can issue its own dollar token, control the name and branding, and still lean on existing stablecoin liquidity. Coinbase says the tokens are meant to be collateralized by Circle USDC and custodied by Coinbase, with built in 1:1 interoperability that allows frictionless swaps with USDC.

Coinbase is pitching the offering to enterprises that care less about crypto narratives and more about settlement. In its own materials, the company points to use cases like treasury management, cross border payments and business to business transfers, plus the ability to earn rewards tied to activity or circulating supply.

There is a financial incentive for Coinbase too. Stablecoins have become a meaningful revenue line for the company through its USDC economics with Circle. Coinbase reported nearly $247 million in stablecoin revenue in the fourth quarter, and it has been vocal in Washington about keeping stablecoin rewards from being broadly restricted.

If USDF graduates from backend testing to a public launch, it would be the clearest signal yet that Coinbase intends to compete in the white label stablecoin market, turning brands and apps into their own issuers, with Coinbase taking a cut for running the rails.