TLDR
- Coinbase has launched Verified Pools, a KYC-verified liquidity service for DeFi transactions built on Base and Uniswap v4
- The non-custodial pools aim to reduce counterparty risk while maintaining DeFi’s efficiency
- Initially available in select regions including the US, Singapore, and Netherlands
- The service targets both retail and institutional traders with Prime Onchain Wallet integration
- Coinbase plans to expand its offerings with 24/7 Bitcoin and Ethereum futures trading and US perpetual futures
Coinbase has launched a new service called Verified Pools that requires users to complete identity verification before accessing decentralized finance (DeFi) liquidity pools. The exchange announced the new offering on Tuesday, March 18, 2025.
The new service aims to reduce risks for DeFi users. It requires all participants to complete Coinbase’s know-your-customer (KYC) process before they can access the trading pools.
Verified Pools work with both institutional and retail traders. The service lets verified users trade digital assets in what Coinbase describes as a safer environment.
The pools are built on Base, which is Coinbase’s Ethereum Layer 2 network. They use the Uniswap v4 protocol to handle the actual trades between users.
Coinbase has also partnered with risk management firm Gauntlet. This partnership helps make sure the pools have enough liquidity and are properly set up.
Non Custodial
One key feature of Verified Pools is that they are non-custodial. This means users keep control of their own assets while trading, rather than handing them over to Coinbase.
The exchange is launching Verified Pools in several regions to start. These include the United States, Singapore, Netherlands, British Virgin Islands, Cayman Islands, and Channel Islands.
Users need to connect through Coinbase’s Prime Onchain Wallet, Coinbase Wallet, or any wallet that has a Coinbase Verifications credential. This credential acts like a badge that shows the user has been verified.
For institutional investors, Verified Pools offers features like concentrated liquidity. This lets liquidity providers set price ranges for their capital to improve efficiency.
Retail traders can use Coinbase Wallet to access the pools. The company says this makes on-chain trading simpler and more accessible for everyday users.
KYC to Stay Compliant
The KYC requirement is part of Coinbase’s efforts to stay compliant with regulations. The exchange has recently limited some offerings in New York, where it will suspend trading of meme coins Floki, Turbo, and Gigachad starting April 14.
Coinbase appears to be doing well under President Donald Trump’s administration. Trump has stated he wants to make America the “crypto capital of the world” with pro-crypto policies.
The exchange recently had a legal win when the U.S. Securities and Exchange Commission (SEC) dropped its lawsuit against the company. This allows Coinbase to operate with fewer restrictions in the country.
Beyond Verified Pools, Coinbase has more plans to expand its trading options. The exchange will soon offer 24/7 Bitcoin and Ethereum futures trading on its Derivatives platform.
Coinbase also plans to launch perpetual-style futures in the U.S. These futures will have extended expiration dates, giving traders more flexibility.
Investment firm Bernstein recently gave Coinbase stock a “buy” rating. The firm set a price target of $310, nearly 70% higher than its recent trading price of around $182 per share.
Bernstein’s analysts cited the more crypto-friendly environment under President Trump as a major factor in their positive outlook for Coinbase. This suggests the exchange may continue to expand its offerings in the coming months.
For users who want to start using Verified Pools, they must first complete Coinbase’s identity verification process. Once verified, they can connect their wallet and begin trading on the platform.
The post Coinbase Introduces KYC-Verified Liquidity Pools for DeFi Trading on Base appeared first on CoinCentral.
