USDC Starts with valet, Coinbase Launching Stable Currency Distribution Custom Service

By Mr. Liu Honglin

 

If an entrepreneurial company wants to put a stable currency in its own product, the challenge now is not that it is not available, but where should I use it if there are so many

The answer from Coinbase is, you can use any one. I'll tailor it。

On May 20th, Coinbase announced the launch of the USDF for Flipcash through its own Custodial Stablecoins platform. Flipcash is an application of community currency and social payments, where users can create a fixed supply of digital currency and use it as digital cash. The role of the USDF is to provide these community currencies with a relatively stable pricing and settlement unit。

According to Coinbase, USDF is available on Solana with 1:1 support from USDC. Flipcash does not need to have its own capability to make a lump-sum distribution, reserve, chain contract and user inflow, but rather to hand over these bottom-up capabilities to Coinbase。

The value of this news is in this change。

A few days ago, discussions in the United States around Clarity Act were also about stabilizing the money-receiving boundary: can the platform for stabilizing the money pay the user interest on similar bank deposits? The lines to be drawn by the regulators are clear, and the stabilization currency cannot easily be turned into an unlicensed high-interest account. The direction given by Coinbase this time was to use the stable currency as an accessible payment and settlement capability。

The industry significance of this step lies in the fact that it moves the stabilization currency from the “platform attracts assets retained by users” to the “applying of removable payment components”。 

For entrepreneurs, the stability currency does not necessarily exist as an independent financial product, but can also be hidden behind specific products such as socialization, games, the creator economy, cross-border electricians, and become a bottom-up tool for pricing, purchasing and settlement。

This is much more interesting than simply issuing a new currency。

Stable currency becomes service

MANY PEOPLE MAY STILL HAVE A LOGIC OF INTEREST RATE DIFFERENTIALS ON THE ISSUER: WHO ISSUES THEM, HOW BIG THEY ARE, HOW MUCH THEY TRADE, OR WHAT THEY GAIN. BUT THE USDF CASE REMINDS US THAT THE COMMERCIAL VALUE OF A STABLE CURRENCY IS NOT NECESSARILY “ISSUING AN ASSET” ALONE, BUT MAY ALSO BE “HELPING OTHERS TO USE THEIR CAPACITY”。

To understand the USDF, first understand what Flipcash is trying to solve。

It is not simply a wallet or a common trading platform, but rather a community currency that wants users to create their own fixed supply. For example, an creator, a community, a small community can create their own digital currency on it and allow other users to buy and use it like using digital cash。

And when you look at it in the specific context, the USDF role will be clearer. Users create a fixed-supply community currency on the Flipcash, which is priced by the USDF; other users want to buy or use such community currency and settle it through the USDF. Coinbase also mentioned that Flipcash chose it because of the need for transparent 1:1 USDC support, USDC incentives, user-friendly access to French currency, and coinbase encryption infrastructure built up over the years。

Then why doesn't Flipcash just use USDC

Of course, USDC can be a bottom-stable asset, but Flipcash obviously wants a settlement closer to his own product. The name itself is tied to Flipcash, and the user sees in the product the platform ' s own stability currency, not an external common asset. More importantly, Coinbase packed USDF with French currency entry, USDC support, circulation scale incentives, chain up, and Flipcash got a set of stable currency capabilities, not just USDC into the product。

The focus here is not “Flipcash issues another coin”, but the community currency at the application level needs a stable base of payments and settlements. That's what the USDF is doing。

The structure of the matter can be seen as follows:

It is precisely this kind of problem that must have been solved by the Custodial Stablecoins platform of Coinbase. According to Coinbase ' s product description, an enterprise can create its own brand-stabilized currency, support and USDC exchange 1:1, with Coinbase processing distribution, reserves, smart contracts and chain-up, and combines payment, reward, developer tools, etc。

Stabilized coins are no longer just assets that are available to users at the front desk, but can also be hidden behind products as part of payments, pricing and settlement。

For an enterprise, it does not really want to be a stabilizer. It was more concerned about whether its products could have a stable settlement unit, whether users could pay and convert successfully, whether the flow of funds could be reconciled, whether the risks could be controlled and whether the bottom system could be stabilized。

These problems are more practical than “one more coin” and are closer to what must be done when a stable currency enters a real business landscape。

New Role for Coinbase

If Coinbase is used only as an exchange, it may not be easy to understand USDF。

The exchange has traditionally been involved in brokering transactions, asset build-ups, customer trading and handling fees. But in the USDF scene, Coinbase's role is not just an entry point. It is more like a stable currency infrastructure provider: helping to apply a stable currency, providing USDC support, connecting French currency entry points, maintaining chain contracts, providing enterprise-level technical and compliance capabilities。

Here's to see the location of Circle and USDC. Circe is not the leading actor in this news, but USDC is the supporting asset behind the USDF. In other words, USDF is ostensibly a Flipcash brand-stabilized currency, and the bottom is still USDC providing dollar stability。

It's important to USDC. In the past, USDC was typical of exchange balances, chain transfers, DeFi and corporate settlements. Now, through Coinbase ' s custom-made currency stabilization platform, USDC can be embedded in more specific applications as the bottom asset behind community money, social payments, platform settlements. Users can see USDF, which still supports USDC。

From this perspective, the division of labour between Coinbase and Circle has become clearer. Circe provides a bottom-stable currency asset, Coinbase wraps this capacity into a product that an enterprise can access and the app places it in its own user scene. Stabilizing competition in the currency sector is no longer just about who issues more, but also about who gets into more real applications。

This is linked to the direction of Coinbase in the last few years. It no longer wants to stand at the end of the user ' s trade in encrypted assets, but rather to move to the bottom of the developers, business payments, wallets, chain settlements. UNSDF is just one specific case。

Of course, the road is even heavier。

Once a stable currency enters a specific application scenario, the problem is not just the speed of the chain transfers, but also the identity of the user, the source of the funds, the money received, money-laundering, sanctions screening, transparency of reserves, foreclosure mechanisms, account processing and user complaints. When a stable currency enters real commerce, it is not enough to encrypt the world's technical narratives。

What should an entrepreneur pay for

For an encrypted payer, the USDF is the most interesting, not necessarily "can I also issue my own stable currency." The more valuable question is why Flipcash needs Coinbase to do it。

The answer is real. The core business of Flipcash is community currency and social payments, not stable currency issuance. It requires a stable monetary capacity to enable the community currency created by users to be priced, purchased, settled and used. If it handles distribution, storage, chain contracts, user inflows and compliance interfaces on its own, the entire product centre of gravity will be held back by the underlying infrastructure。

This is a direct inspiration for encrypted payment entrepreneurs: many applications do not need to be their own distributors, and they need to be connected to business to stabilize currency capacity. Those who are able to make the access process easier could become providers of infrastructure for the next application。

IN THE USDF CASE, THE SPECIFIC PROBLEM AND BUSINESS NEEDS ARE: HOW DOES THE PLATFORM MATCH THE MONEY FLOWS AND THE CHAIN OF SETTLEMENT THAT USERS BUY COMMUNITY CURRENCY? HOW DO WE GET USERS THROUGH THE FRENCH ENTRANCE? HOW DO WE MAKE SURE THAT THE BRAND STABILIZES THE CURRENCY WITH THE BOTTOM USDC EXCHANGE? HOW DO YOU EXPLAIN TO USERS WHO ISSUED THE STABILIZER, WHO SUPPORTED IT AND WHO WENT WRONG

These issues have gone beyond “marketing” and have entered the chain of products, payments and compliance。

What real clients need is not a very new concept of stable currency. What it needs is a system that allows users to make payments smoothly, allows the platform to clear its accounts and allows back-offices to clear the flow of funds。

BUT THE USDF CAN'T PUSH IT TO ANOTHER EXTREME, SAYING THAT ANY COMPANY IN THE FUTURE CAN ISSUE ITS OWN NAME FOR STABILIZATION。

After all, once a product involves real money exchange, user balances, foreclosure arrangements and transferable assets, it naturally comes close to financial regulation. Even if it is packaged in community currency, brand currency, application of in-dollar accounts, regulation is still about where the money comes from, why the users buy it, what the platform promises, whether the assets are negotiable and who bears the risk。

Coinbase was able to do this because it was built up in the United States encryption infrastructure and compliance system, and it was able to integrate USDC, the French currency entry, and the uplinking of peacekeeping business services。

If an ordinary business team sees only “each application can have its own stable currency”, it can easily be applied to the other side of the road。