Coinbase Launches KYC-Verified Liquidity Pools for DeFi Trading
by Maisie Morrison · BlockonomiTLDR
- Coinbase has introduced “Verified Pools,” KYC-verified liquidity pools for DeFi trading targeting both retail and institutional users
- The pools operate on Coinbase’s Layer 2 network Base and use Uniswap v4 protocol with risk management from Gauntlet
- Initially available in the US, Singapore, Netherlands, British Virgin Islands, Cayman Islands, and Channel Islands
- Verified Pools are non-custodial, allowing users to maintain control of their assets while addressing compliance concerns
- This launch comes amid a favorable regulatory environment under the Trump administration, which aims to make the US the “crypto capital of the world”
Cryptocurrency exchange Coinbase has launched a new service called “Verified Pools,” designed to reduce counterparty risk for decentralized finance (DeFi) participants. The company announced the new product on Tuesday, March 18, 2025.
Verified Pools are liquidity pools that are only accessible to users who complete Coinbase’s identity verification process. This Know-Your-Customer (KYC) element aims to create a safer trading environment for both retail and institutional traders.
The new service operates on Base, Coinbase’s Ethereum-focused Layer 2 network. It utilizes the Uniswap v4 protocol for trading functionality.
Coinbase has partnered with risk management firm Gauntlet to strengthen the security and stability of these liquidity pools. This collaboration focuses on optimizing pool configurations and maintaining overall pool health.
A key feature of Verified Pools is their non-custodial nature. This means users still maintain full control over their assets while trading, unlike on traditional centralized exchanges.
The service is currently available in select regions. These include the United States, Singapore, Netherlands, British Virgin Islands, Cayman Islands, and Channel Islands.
Bridging Traditional Finance and DeFi
For institutional clients, Verified Pools offers concentrated liquidity features. This allows liquidity providers to specify price ranges for their capital, potentially increasing efficiency and earning potential.
Institutional users can connect to the pools via API. They can also use Coinbase’s Prime Onchain Wallet for an enhanced trading experience.
Retail traders can access the pools through Coinbase Wallet. The company says this creates a simpler way for everyday users to engage with DeFi trading.
The launch comes at a time when Coinbase appears to be in a favorable position. President Donald Trump’s administration has stated its aim to make the United States the “crypto capital of the world.”
The regulatory environment has also improved for Coinbase. The U.S. Securities and Exchange Commission (SEC) recently dropped its lawsuit against the exchange.
This shift allows Coinbase to operate more freely within the United States. The company is taking advantage of this change by expanding its service offerings.
Besides Verified Pools, Coinbase also revealed plans for 24/7 Bitcoin and Ethereum futures trading. These will be available on the Coinbase Derivatives platform in the coming weeks.
The company further announced plans to launch perpetual-style futures. These will have extended expiration dates, giving traders more options.
Coinbase’s KYC requirements for the pools are part of its broader compliance efforts. This includes scaling back access to some offerings in certain regions, like New York.
Recently, Coinbase announced it would halt trading of three popular meme coins in New York. Trading of Floki (FLOKI), Turbo (TURBO), and Gigachad (GIGA) will be suspended in the state starting April 14, 2025.