Coinbase Begins Backend Testing of USDF Stablecoin Under Custom Token Program

Highlights:

• Coinbase is testing USDF Stablecoin internally to support branded business payments on its exchange.
• Flipcash plans to launch USDF publicly this year for payroll settlements and cross-border business transfers.
• Stablecoin transaction activity surged in 2025 following clearer US payment rules under the GENIUS Act.

Coinbase has enabled backend testing for a new dollar-backed stablecoin tied to its enterprise token framework. The test involves USDF, a stablecoin developed by crypto infrastructure firm Flipcash. Coinbase activated the token on Coinbase Exchange for internal operational testing. The company confirmed that trading, deposits, and withdrawals remain unavailable.

🧪 #Coinbase Experiments With Flipcash’s USDF as It Rolls Out Custom Stablecoins#Coinbase has begun backend testing of Flipcash’s in-development stablecoin, USDF, to let businesses issue their own branded tokens. #crypto

— CryptOpus (@ImCryptOpus) January 28, 2026

Coinbase stated that the rollout supports backend validation only. The company linked the test to its custom stablecoins feature launched in December. That program allows businesses to issue branded stablecoins backed by Circle’s USDC.

Coinbase designed the framework to support treasury activity across supported blockchains. The system enables companies to transfer money without the traditional banking rails. It also facilitates reward systems that are linked to the use of stablecoins. Coinbase still uses Circle to manage collateral and provide liquidity.

Stablecoins represent a growing share of Coinbase’s business activity. The company reported nearly $247 million in stablecoin-related revenue during the fourth quarter. Coinbase has also engaged lawmakers on stablecoin provisions in upcoming crypto legislation. The firm has asked policymakers to preserve incentives tied to compliant stablecoins.

USDF Stablecoin Designed for Branded Business Payments

Flipcash is developing USDF to support business payment activity across its platform. People familiar with the project expect a public launch in early 2026. Once launched, USDF will serve as the primary stablecoin inside the Flipcash app. The token is intended for operational payments rather than retail trading.

USDF supports payroll processing and vendor payments. It also facilitates business-to-business cross-border settlements. Banks tend to delay and increase the charges on such categories of payments. Stablecoins provide quicker settlement and better fund visibility. Businesses are more interested in having direct control over payment flows.

Coinbase developed a custom stablecoin infrastructure to fulfill these operational requirements. The system allows companies to manage liquidity internally. It also enables fund movement across multiple blockchains supported by the exchange. Flipcash plans to anchor these functions around USDF within its ecosystem. Other firms are developing similar products through Coinbase. Solana-based self-custody wallet Solflare is working on a branded stablecoin using the same framework.

solflare partnering with @coinbase with a new feature of custom stablecoins is extremely bullish

businesses can launch branded stablecoins backed 1:1 by collateral custodied by coinbase, earn rewards on usage, and more

follow the momentum. @solflare branded stablecoin incoming… pic.twitter.com/UJC9FCsvOK

— neppah ti tel 💜 (@neppahtitel) December 18, 2025

Regulation and Transaction Growth Reshape the Stablecoin Market

Stablecoin transaction activity increased sharply during 2025. Global transaction value reached $33 trillion, according to CoinGecko market data. That figure marked a 72% increase from the previous year. USDC processed $18.3 trillion in transactions during the period. USDT followed with $13.3 trillion while holding the largest market capitalization.

Regulatory developments supported higher stablecoin usage. The United States passed the GENIUS Act in July 2025. The law established a framework for payment stablecoins. Industry participants linked the legislation to stronger institutional confidence. Legal clarity has encouraged broader adoption across regulated markets.

Payment platforms also reported higher stablecoin activity during the year. Revolut recorded a sharp rise in stablecoin payment volumes in 2025. The platform estimated a 156% year-over-year increase. These payments occurred across consumer and merchant channels. In a related development, Tether introduced USA₮ under the GENIUS Act framework. The official issuer is Anchorage Digital, a federally chartered bank.