Overview
- Coinbase announced on May 20 that Flipcash built USDF on its Custom Stablecoin platform and that the token is collateralized one-to-one with Circle’s USDC.
- USDF is deployed initially on Solana to keep transaction costs low and is meant to serve as the settlement asset for Flipcash’s app where community currencies are priced and settled in USDF.
- Coinbase says USDF is currently in operational-only backend testing on its exchange, which means there is no public trading, no deposits, and no withdrawals yet.
- Coinbase issues and manages issuance, backing, settlement, and fiat onramps for custom stablecoins while Circle holds the USDC reserves, a setup that expands Coinbase’s stablecoin infrastructure business.
- If other firms copy Flipcash’s model, more branded tokens like USDF would raise demand for USDC, which could boost Coinbase’s stablecoin-related revenue but will depend on regulatory clarity and real-world adoption.