- Coinbase is testing USDF internally, with no trading or transfers enabled yet.
- Custom stablecoins aim to streamline payments and cross-chain fund movement.
- Stablecoins drove $247M Q4 revenue and $33T in 2025 transaction volume.
Coinbase has begun internal operational testing of the USDF stablecoin, a dollar-backed token being developed by crypto infrastructure firm Flipcash. The test phase runs on Coinbase Exchange systems and does not support trading, deposits, or withdrawals, according to the company.
The USDF stablecoin is part of Coinbase’s Custom Stablecoins framework, introduced in December to allow companies to issue branded stablecoins backed by Circle’s USDC. The program aims to help businesses move funds across supported blockchains while earning rewards linked to token activity.
USDF Stablecoin Tied to Coinbase Custom Stablecoins Program
Coinbase stated that the current USDF testing remains limited to backend validation. The company confirmed that broader functionality will follow in later stages, with public availability planned for early 2026.
Flipcash plans to use USDF as the primary stablecoin within its application once the token launches. Other firms are also working with Coinbase on custom stablecoins, including Solana-based wallet Solflare and decentralized finance platform R2.
Custom stablecoins are positioned as tools for payments, business-to-business settlements, cross-border transfers, and internal liquidity management. Coinbase highlighted these use cases as areas where traditional banking systems can be slow or costly.
Stablecoins Remain Central to Coinbase Revenue Strategy
Coinbase continues to rely largely on its partnership with Circle, the issuer of USDC. Through this relationship, the exchange earns interest and fees tied to USDC usage. The company reported nearly $247 million in stablecoin-related revenue in the fourth quarter, highlighting the role of dollar-backed tokens in its business model.
Stablecoin Market Activity and Regulatory Context
Global stablecoin transaction volume reached $33 trillion in 2025, a 72% increase year over year, according to Bloomberg data compiled by Artemis Analytics. USDC processed $18.3 trillion in transactions, while USDT handled $13.3 trillion. USDT maintained its position as the largest cryptocurrency by market capitalization at $186 billion.
The growth followed the passage of the GENIUS Act in July 2025, which introduced a U.S. regulatory framework for payment stablecoins. Industry participants have cited the legislation as a factor supporting broader institutional adoption. Revolut also reported rising stablecoin payment volumes in 2025, with transactions estimated at $10.5 billion, reflecting growing use of digital dollars in payments.
The stablecoin market currently stands at $312.1 billion, with the U.S. Treasury projecting it will reach $2 trillion by 2028. Moreover, Bloomberg has forecast that stablecoin payment flows could reach $56.6 trillion by 2030, based on an 81% compound annual growth rate.
Related: Analyst Predicts a Stablecoin Explosion Following the MiCA Stablecoin Framework
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