Coinbase trials Coinbase‑custodied custom stablecoins — Flipcash’s USDF in backend testing
Coinbase has begun backend testing of its Custom Stablecoins feature, enabling businesses to issue branded, USD‑backed tokens custodied by Coinbase. The current test token, USDF, is developed by crypto infrastructure firm Flipcash and is collateralized 1:1 by USDC held with Circle. USDF is in internal testing on Coinbase Exchange and is not available for trading, deposits, or withdrawals. Coinbase says custom stablecoins will support cross‑chain transfers and activity‑based rewards, and partners including Solflare (Solana ecosystem) and R2 are building their own branded tokens with Coinbase’s tooling. Stablecoins contribute materially to Coinbase’s revenue (about $247M in Q4), and the broader stablecoin market is roughly $312.6B today. Traders should watch launch timing, regulatory moves affecting stablecoin incentives, and potential shifts in USDC flows and Coinbase fee/interest income — all of which could affect liquidity and trading dynamics around USDC‑pegged assets.
Neutral
Short term: neutral. USDF is currently backend/internal only and not tradable, so immediate price action for USDC or other tokens is unlikely. The announcement may cause speculative attention but no direct liquidity shift until public launch. Medium/long term: mildly bullish for Coinbase’s non‑trading revenue if custom stablecoins scale, since issuers custodied by Coinbase could increase fee and interest income and concentrate stablecoin flows on Coinbase. Conversely, possible regulatory restrictions on rewards or changes to USDC backing/reporting could cap upside or shift flows away from USDC. For traders this means monitoring launch milestones, on‑chain flow metrics for USDC, announced reward structures, and regulatory guidance; these will determine whether USDC supply/demand and Coinbase revenues shift materially and thereby influence price or market structure.