On March 18, Coinbase, a leading cryptocurrency exchange, unveiled ‘Verified Pools’, a new liquidity solution designed to make on-chain trading safer and more transparent for both institutional and retail users.
According to information posted on their official X handle on Tuesday, this feature aims to reduce counterparty risks while maintaining decentralisation by integrating identity verification with liquidity pools.
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A safer trading environment
Verified Pools will require users to link their Coinbase Wallet, Prime Onchain Wallet, or third-party wallets using a Coinbase Verifications credential. This primarily aims to verify liquidity providers, adding an extra layer of trust to on-chain transactions.
“Verified Pools combines the security of traditional finance with the efficiency of blockchain, creating a new standard for compliant DeFi engagement,” said Coinbase CEO Brian Armstrong.
Built on the Uniswap v4 protocol, Verified Pools will leverage advanced smart contract functionality, allowing for customisable trading features.
Additionally, Coinbase has partnered with Gauntlet, a risk management platform, to optimise liquidity pool configurations and ensure overall market health. Transactions occur on Base, Coinbase’s layer-2 network, which reduces costs and improves speed.
For institutions, Verified Pools will offer concentrated liquidity and controlled access, ensuring only verified users can supply or trade assets. Retail traders can also benefit from direct, intermediary-free trading with verified liquidity. “Your keys, your trades,” emphasizes Coinbase, highlighting the non-custodial nature of the platform, where users maintain full control over their assets.
Currently, Verified Pools is available in the U.S., Singapore, the Netherlands, the British Virgin Islands, the Cayman Islands, and the Channel Islands. The launch comes amid growing institutional interest in crypto, with a recent Coinbase and EY-Parthenon report revealing that institutional investors plan to increase their exposure to digital assets by 2025.
“Verified Pools is the next step in Coinbase’s commitment to advancing the on-chain ecosystem,” the company stated. With regulatory clarity on the horizon and increasing institutional adoption, Coinbase is poised to lead the next wave of on-chain innovation. As Armstrong noted, “This is just the beginning—there’s more to come.”
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What you need to know about Coinbase
Coinbase is a leading cryptocurrency exchange in the U.S. that has established itself as a cornerstone of the digital asset ecosystem.
It has a user-friendly platform, robust security measures, and regulatory compliance.
Globally, Coinbase serves millions of retail and institutional investors. As a trusted gateway to crypto, it continues to drive adoption, offering a wide range of services, from trading to custody solutions.