Coinbase pilots Flipcash’s USDF as it prepares white‑label stablecoin offering for businesses

Coinbase has begun internal testing of a Flipcash‑developed dollar‑pegged token as it prepares a product that allows firms to mint branded stablecoins collateralized by USDC. The trial is limited to exchange infrastructure and does not yet permit public trading, deposits or withdrawals, underlining that the work is operational validation rather than a market launch. The initiative is part of a broader “custom stablecoin” capability that targets business customers seeking programmable cash for payroll, settlement, cross‑border transfers and treasury functions. Partners such as a Solana wallet provider and a decentralized finance platform are participating, signaling an attempt to make the offering multichain and integrable with existing crypto rails. By anchoring issuers’ tokens to Circle’s USDC custody, Coinbase leverages a deep existing relationship while shifting some issuer economics and operational responsibilities onto third parties. That linkage delivers quicker rollout and regulatory familiarity but concentrates counterparty exposure to USDC and its custodian. Stablecoins already represent a meaningful business line for the exchange; recent quarterly figures show significant revenue tied to stablecoin activity, and management has been vocal about preserving reward mechanics in upcoming regulatory discussions. Market context amplifies the commercial stakes: the stablecoin sector sits in the hundreds of billions today and is forecast by some public bodies and analysts to expand dramatically over the coming years, creating a large addressable market for branded issuers and distribution platforms. The product design—branded tokens that earn activity rewards and move fluidly across supported chains—is explicitly aimed at monetizing custody, settlement fees and distribution reach. Operationally, Coinbase must solve custody segregation, on‑chain redemption guarantees, and interoperability without creating fragile peg risks for customers’ dollar exposure. Regulators and legislators will scrutinize any white‑label issuance model that broadens stablecoin distribution, especially given ongoing debates about reserve transparency, custody practices and permissible yield programs. If executed cleanly, the offering could accelerate enterprise adoption of tokenized dollars and embed Coinbase more deeply into corporate payment flows. Conversely, missteps in reserve management or a regulatory clampdown could quickly transform a growth vector into a reputational and compliance burden. The timeline remains cautious: the Flipcash token is slated for general availability next year, but the immediate phase is internal testing designed to validate back‑office plumbing rather than customer use. Overall, the move reframes Coinbase as both marketplace and facilitator of dollar‑pegged issuance, with upside for revenue diversification alongside amplified regulatory and operational responsibilities.