Coinbase Didn’t Just Launch a Product, It Launched a Financial Empire Disguised as a Service

Coinbase unveils Custom Stablecoins service, letting brands mint USDC-backed digital dollars with full compliance and custody support.

Coinbase has introduced a new product that could reshape crypto payment infrastructure for global brands. The crypto exchange now allows businesses to create branded digital dollars backed by USDC.

Marc Baumann, Founder and CEO of 51 Group, shared the news on LinkedIn. He stated most people don’t realize how significant this development is. Baumann’s post explained that Coinbase handles issuance, custody, and compliance for these stablecoins.

Coinbase Custom Stablecoin Service to Transform Brand Loyalty Programs

Companies can now issue more than loyalty points, according to Baumann. They can issue liquid, tradable, yield-generating money that moves across wallets and blockchains.

Baumann provided hypothetical examples in his post. DeltaDollars. StarbucksUSD. AmazonCoin. NBA Bucks. All would be backed by Coinbase’s regulatory infrastructure.

The post highlighted a potential Klarna scenario. KlarnaCredits could reward customers after purchases. These credits could be reused across merchant networks. They would earn cashback while idle. And they would work with decentralized exchanges and bridges.

Coinbase Business Platform Powers Enterprise Adoption

The Custom Stablecoins offering operates within Coinbase’s Business platform. This infrastructure supports crypto payment rails and treasury management for institutions. Companies gain access to over 100 million existing wallets.

Baumann noted the revenue structure. Coinbase earns spread on redemptions plus transaction and custody fees. He described the potential scale as massive.

The service competes with white-label stablecoin providers, according to Baumann’s analysis. He questioned why companies would use vendors like Agora when they could brand USDC with Coinbase’s regulatory backing.

Coinbase also partnered with Apollo to explore stablecoin credit strategies. The exchange integrated x402 payment protocol for transactions. It expanded crypto-as-a-service offerings for institutional stablecoin adoption.

Related Reading: Coinbase Taps Chainlink for Cross-Chain DeFi Connectivity

Coinbase Unveils Broader Platform Updates

The Custom Stablecoins launch accompanied broader platform updates. Coinbase announced these changes in a system update titled “The future of finance is on Coinbase.”

The updates include stock trading rollout on the main app. Prediction markets are being added. A simplified interface now handles futures and perpetual contracts.

Solana traders received new functionality. Users can now trade all Solana assets immediately after creation. Primary token sales went live. The Base App launched globally as an onchain everything app.

Coinbase Business reached general availability. The fiat to crypto onramp expanded. Partnerships like Solflare Flipcash R2 and ETHA BlackRock tokenization deals advanced institutional adoption.

The exchange positioned itself as comprehensive financial infrastructure. Offerings span from branded stablecoins to stock trading across the Coinbase Business platform.

Baumann described the launch as more than a product release. He characterized it as a fundamental shift in how companies approach customer engagement and value transfer.

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