Coinbase, in December 2025, had announced that it was going to allow businesses to create their own stablecoins to improve internal payment systems.In a fresh development, this custom stablecoin feature from Coinbase is entering into its trial phase with Flipcash’s USDF token.
Announcing the development, the U.S.-based exchange said that the USDF token has been enabled on Coinbase Exchange for operational testing.
“This is a backend test phase only. Trading, deposits, and withdrawals are currently unavailable,” Coinbase Markets said in its update on the test token on X.
Slated to be enabled soon, the USDF token will be pegged to the USD and will serve as the native token for the Flipcash ecosystem to facilitate instant, peer-to-peer transfers without the involvement of intermediaries. The token will be collateralized in 1:1 ration with the USDC stablecoin that is held in custody by Coinbase.
Understanding customizable stablecoins
Coinbase intends to tap into the growing demand for on-chain programmable money, particularly among large cap businesses. Last year in December it announced that it will start offering “Stablecoin-as-a-Service” — carving a new category of crypto offerings.
Through this initiative, Coinbase plans to let companies brand USDC-backed stablecoins under their company names and use these tokens for quicker payment facilitations, loyalty programs, and B2B payments.
“Coinbase handles the mechanics of issuance, redemption, security, and compliance so you can focus on the aspects of your stablecoin program that matter: asset name and ticker as well as visual branding,” the blog post announcing this service said in December 2025.
Self custody wallet Solflare, and fintech firm R2 are also working with Coinbase on their custom stablecoins.
Coinbase will be offering rewards to the issuers of custom stablecoins, it said in its announcement.
“You can earn rewards based on the total circulating supply of your Custom Stablecoin. Rewards are accrued daily and paid out monthly at the highest available rewards rate offered by Coinbase Prime, net of a service fee,” the exchange noted.