Coinbase advances development of business-branded stablecoin platform
The cryptocurrency exchange has partnered with Solflare, R2, and Flipcash to introduce business-branded stablecoins to the marketplace, with current trials concentrating on USDF from Flipcash.
The cryptocurrency platform is currently conducting backend trials of USDF, a stablecoin under development by Flipcash, as it prepares to launch a new service enabling companies to develop their own branded digital tokens backed by the US dollar.
Unveiled in December, the "Coinbase Custom Stablecoins" service will enable companies to generate revenue from token activity and facilitate frictionless fund transfers across various Coinbase-compatible blockchain networks, with Circle's USDC providing the underlying collateral for these tokens.
"A new Coinbase Custom Stablecoin, USDF, has been enabled on Coinbase Exchange for operational testing," Coinbase posted to X on Tuesday, adding:
"This is a backend test phase only. Trading, deposits, and withdrawals are currently unavailable. Stay tuned for more updates."
Business-branded stablecoins can provide companies with enhanced operational versatility spanning everything from employee compensation and inter-company transactions to international payments and cash management operations.
Flipcash is behind the USDF stablecoin
USDF, the stablecoin currently undergoing testing, is under development by Flipcash, a cryptocurrency infrastructure platform, with an anticipated launch date in early 2026.
Upon its official release, USDF is set to become the principal stablecoin within the Flipcash application.
Additionally, Solflare, a self-custody wallet designed for the Solana ecosystem, along with decentralized finance platform R2, are collaborating with Coinbase to develop and introduce their own branded stablecoin offerings.
The exchange's existing stablecoin operations are primarily built around its collaboration with Circle, a leading stablecoin issuer, through which Coinbase supports USDC and generates revenue through interest payments and transaction fees.
Stablecoins key to Coinbase's business model
The overall stablecoin sector is presently valued at $312.6 billion, with projections from the US Treasury in April indicating potential growth to $2 trillion by 2028.
Earlier this month, Bloomberg forecasted that transaction volumes involving stablecoins would expand at a compound annual growth rate of 81% to reach $56.6 trillion by 2030.