TLDR
- Coinbase has rolled out 'Verified Pools' aimed at making DeFi trading more secure for both individual and institutional users by implementing KYC verification.
- Running on Coinbase’s own Layer 2 network, Base, these pools utilize the latest Uniswap v4 protocol integrated with Gauntlet’s risk management tools.
- Initially, the service is rolled out to users in territories such as the US, Singapore, Netherlands, and various offshore jurisdictions.
- These Verified Pools are designed to be non-custodial, allowing users to retain control over their digital assets while ensuring compliance with regulations.
- The launch benefits from a favorable policy environment, as the Trump administration aims to position the US as the leading global hub for cryptocurrency.
With 'Verified Pools,' Coinbase is providing a new service to minimize counterparty risks for those involved in DeFi, whether casual traders or large institutions. The company announced the new product on Tuesday, March 18, 2025.
By enforcing identity checks through KYC, the pools aim to foster a more secure environment for all users, setting a benchmark for safer DeFi interactions.
Building on Coinbase’s Base network, the service uses Uniswap v4 to enable trading functionality.
Coinbase's collaboration with Gauntlet focuses on bolstering the stability of these pools by optimizing configurations and ensuring the health of the liquidity.
Enter the seamless trading world with Coinbase's Verified Pools, a reliable on-chain solution.
Dive in. ↓ pic.twitter.com/rddrniaXu8
— Coinbase 🛡️ (@coinbase) March 18, 2025
With their non-custodial design, Verified Pools give traders full asset control, differing from traditional exchanges where users might surrender some ownership.
Currently, this service is accessible in select areas, including prominent financial hubs like the US, Singapore, and the Netherlands.
Fusing elements of Traditional Finance with DeFi innovations, the service is tailored for forward-thinking investors.
Institutional clients can benefit from concentrated liquidity features, enabling them to define price ranges and potentially improve financial returns.
Large-scale traders have API access to these pools and the option to use Coinbase’s Prime Onchain Wallet for streamlined operations.
For everyday traders, using Coinbase Wallet gives a straightforward approach to participate in DeFi trading through these pools.
Coinbase’s timely introduction aligns with the advantageous stance of the Trump administration, which has shown support for making the US a crypto stronghold.
The SEC’s decision to drop its case against Coinbase signifies a brighter regulatory environment, paving the way for the company's growth in the US market.
This regulatory progress allows Coinbase to extend its service range, taking full advantage of the positive changes.
In addition to Verified Pools, Coinbase is preparing to offer around-the-clock Bitcoin and Ethereum futures trading, soon available on their Derivatives platform.
Coinbase also plans to roll out perpetual futures, featuring extended expirations that present traders with more diverse trading opportunities.
KYC requirements for these pools are key to Coinbase’s compliance strategy, which includes selectively limiting access in regions like New York.
Coinbase recently announced it would stop offering three popular meme coins in New York, including Floki, Turbo, and Gigachad, effective from April 14, 2025.
