Coinbase (NASDAQ:COIN) is launching a new product suite called Custom Stablecoins, which will be allowing businesses to create a custom stablecoin that is to be “fully backed 1:1 by flexible collateral (including USDC),” all custodied by Coinbase, offering “security and rewards without sacrificing interoperability and ease of use for consumers.”
As explained in a blog post by Coinbase, stablecoins have become the backbone of the onchain economy, “offering fast, cheap, and 24/7 global settlement.”
In 2025 alone, stablecoins powered “$9T in adjusted annual transaction volume and are set to become a $1.9T market by 2030 (per Citi).”
Crypto exchange Coinbase further noted that for too long, enterprises have had to “rent” stablecoins for use, relying “on third-party issuers and platforms to access stablecoin liquidity with limited control over the product experience.”
Coinbase added that they are now focused on changing that with their platform.
Custom Stablecoins, a “stablecoin-as-a-service” solution allows any business to create a new, custom-branded stablecoin “backed 1:1 by a flexible mix of USDC and other USD-stablecoins without needing to build their own infrastructure.”
With Coinbase’s Custom Stablecoins platform, we help companies bypass the “one-size-fits-all” stablecoin model by offering:
- Issuance infrastructure: Launch without operational overhead. We handle the smart contract, security, and chain management.
- Brand identity: Tailor the asset name, ticker, and visual identity to extend your brand presence through your user’s wallets and the entire onchain ecosystem.
- Global distribution: Access Coinbase’s global consumer, business, and institutional user base. Secure and transparent reserves:
User reserves can be backed by “flexible USD-stablecoin collateral, including USDC, and held in segregated wallets custodied by Coinbase.”
Then there is also a reliable revenue model: firms can reportedly get rewards on their stablecoin’s supply, accrued daily and paid out weekly directly to their Prime account.
And there is 1:1 interoperability: there will be zero-fee swaps “between USDC and any Coinbase Custom Stablecoin, ensuring instant liquidity.”
Coinbase says that it handles the mechanics of issuance, “redemption, security, and compliance so you can focus on the aspects of your stablecoin program that matter.”
They are working on more customization capabilities.
Custom Stablecoins are said to be “fully interoperable with USDC, select Coinbase-supported USD-stablecoins, and other Custom Stablecoins issued by Coinbase, providing you instant access to the global USDC liquidity network.”
This reportedly eliminates the “need to build 0-to-1 network effects and distribution, enabling users to benefit from 1:1 conversions without friction, slippage, or delay.”
Users are now able to earn rewards based “on the total circulating supply of their Custom Stablecoin.”
Coinbase further noted that rewards are “accrued daily and paid out monthly at the highest available rewards rate offered by Coinbase Prime, net of a service fee.”
They are eager to work with partners like Flipcash, Solflare, and R2, who are all currently said to be exploring the launch of Custom Stablecoins.
It is not quite clear at this point why businesses would actually want to issue their own stablecoins. It may be better to simply use existing and established stablecoins such as USDC or USDT in order to gain exposure to this space and become more familiar with these new technologies.
It could overcomplicate the whole process for businesses should they try to issue their own stablecoins and may be unnecessary altogether.