Quick Breakdown
- Coinbase launched “Custom Stablecoins” in December 2025, letting businesses issue branded USD tokens backed 1:1 by Circle’s USDC.
- Flipcash’s USDF now undergoes backend testing on Coinbase Exchange; trading and deposits remain unavailable.
- Solflare and R2 also develop custom tokens, expanding branded stablecoin options for payments and rewards.
Coinbase has begun backend testing of USDF, a custom stablecoin from crypto infrastructure firm Flipcash, marking a key step in its branded token initiative. Announced on X on January 27, 2026, the test runs on Coinbase Exchange infrastructure but limits functions to operations only no trading, deposits or withdrawals yet. This builds on the “Coinbase Custom Stablecoins” feature from December 2025, which lets firms create personalised USD-pegged assets backed by USDC reserves for seamless transfers across supported chains.
A new Coinbase Custom Stablecoin, USDF, has been enabled on Coinbase Exchange for operational testing.
Please note: This is a backend test phase only. Trading, deposits, and withdrawals are currently unavailable. Stay tuned for more updates.
— Coinbase Markets 🛡️ (@CoinbaseMarkets) January 27, 2026
The move highlights Coinbase’s strategy to turn stablecoins into versatile tools beyond speculation. Businesses gain flexibility for payroll, B2B deals, cross-border settlements and treasury management, with rewards on activity to boot. Flipcash plans USDF as its app’s main stablecoin by early 2026, while Solana wallet Solflare and DeFi platform R2 join the effort.
Custom stablecoins reshape business finance
Coinbase handles issuance, compliance, custody and settlements, easing entry for partners like fintechs and retailers. Tokens keep a 1:1 peg via USDC collateral, blending brand appeal with blockchain speed refunds or rebates could flow as “store dollars” usable in ecosystems or DeFi. This white-label model cuts costs versus standalone issuance, positioning Coinbase as a stablecoin hub amid rising on-chain revenue from DeFi and payments.
DeFi Planet has tracked crypto networks hitting nearly $20B in on-chain fees, with DeFi claiming 63% a maturing sector ripe for custom tools like these. As institutional momentum builds, such as Solana’s RWA tokenisation surge, branded stablecoins could drive everyday adoption.
What this means for Web3 growth
Experts see this as stablecoins evolving from generic USD anchors to tailored payment rails, boosting loyalty programmes and closed-loop economies. Coinbase’s infrastructure ensures regulatory alignment, vital as global rules tighten like Russia’s mining crackdown or Pakistan’s crypto ambitions. With USDC partnerships, it counters rivals while deepening liquidity across its L2 and wallets.
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