Coinbase tests USDF, its first in-house stablecoin beyond USDC

Coinbase has initiated its first steps towards expanding its stablecoin portfolio. On 27 January 2026, the company announced backend testing for USDF, a new stablecoin built on its Custom Stablecoin platform. This move signifies a shift beyond its long-standing partnership with Circle for USDC.

USDF is the first stablecoin to leverage Coinbase's newly developed infrastructure. Each token will be fully backed by an equivalent amount of USDC, ensuring a 1:1 collateralisation. The testing phase is focused on evaluating the coin's functionality and security before wider use.

Trading, deposits, and withdrawals for USDF remain unavailable during this initial stage. Coinbase has outlined plans for further testing, with updates expected as progress continues. The company has also hinted at broader ambitions to diversify its stablecoin strategy in the future.

The introduction of USDF aligns with Coinbase's push to fortify its payments and stablecoin infrastructure. While USDC remains its primary stablecoin, the new offering signals a potential expansion into additional digital assets.

The testing of USDF reflects Coinbase's efforts to grow its stablecoin ecosystem. Once fully operational, the coin will operate alongside USDC, providing users with another option for digital transactions. Further details will be released as the testing phase progresses.