Coinbase Begins Testing for New USDF Stablecoin for Trading

Coinbase has started backend testing for a new stablecoin called USDF on its exchange platform. The company announced the development through its Coinbase Markets account on social media, specifying that the token is currently in an operational testing phase only. Trading, deposits, and withdrawals remain unavailable at this stage, with the exchange promising further updates as testing advances.

The move represents an early step in what could become a significant addition to Coinbase's stablecoin offerings. The exchange already co-issues USDC with Circle, one of the most widely used dollar-pegged tokens in the industry. By introducing USDF through its recently launched Custom Stablecoin infrastructure, Coinbase is demonstrating its intent to broaden its role in the stablecoin market.

This infrastructure, unveiled late last year, enables the creation of fully collateralized dollar-backed tokens using USDC as the underlying reserve. The framework provides a regulated pathway for issuing custom stablecoins, and USDF is the first token to enter testing under this system. Coinbase has positioned the platform as a way to meet growing demand for compliant, institution-friendly digital dollars.

Regulated Stablecoins Gain Another Competitor

In a related development, Tether introduced its own regulated stablecoin, USAT, which went live yesterday, before Coinbase's USDF announcement. Designed specifically for the U.S. market, USAT operates under domestic federal oversight and is available to American customers for the first time. Unlike Tether's flagship USDT token, which has never been offered directly to U.S. users, USAT targets institutions and individuals seeking a fully compliant dollar-pegged option.

Tether described the new token as a product built for users who prioritize regulatory alignment and domestic oversight. The launch reflects a strategic shift for the company, which has faced ongoing scrutiny over transparency and reserve practices with USDT. By offering USAT within a dedicated U.S. framework, Tether aims to capture demand from customers who require a stablecoin that meets American regulatory standards.

Both developments highlight the intensifying competition among major players to provide regulated stablecoin options for the U.S. market. Coinbase's backend testing of USDF and Tether's rollout of USAT come at a time when institutional interest in compliant digital dollars continues to grow. These initiatives also align with broader industry efforts to create stablecoins that operate fully within established regulatory boundaries.

Coinbase has been actively expanding its product suite over the past year, including plans for perpetual futures, prediction markets, and enhanced stablecoin capabilities. The Custom Stablecoin infrastructure supporting USDF is a key part of this strategy, offering a standardized way to issue new tokens backed by high-quality reserves. As testing progresses, the exchange is expected to provide more details on timeline and availability.