Coinbase has launched Verified Pools, a new set of liquidity pools available exclusively to verified users. The move, announced Tuesday, aims to reduce counterparty risk and bring greater transparency to decentralized finance (DeFi) trading.
Verified Pools are open to users in the United States, Singapore, Netherlands, British Virgin Islands, Cayman Islands, and Channel Islands. Participants must complete Coinbase’s identity verification process before accessing the pools.
The pools are designed for institutional and retail traders, offering an additional layer of security in on-chain trading by requiring know-your-customer (KYC) authentication.
Verified Pools provide institutions with access to concentrated liquidity, allowing liquidity providers to specify price ranges for their capital. This feature enhances capital efficiency and earning potential.
Users can connect to the pools through Coinbase’s Prime Onchain Wallet, Coinbase Wallet, or another wallet carrying the Coinbase Verifications credential.
The initiative aligns with Coinbase’s broader efforts to integrate traditional finance with DeFi markets. By requiring verification, Verified Pools aims to attract high-volume traders and institutional investors who have been cautious about entering DeFi due to regulatory and security concerns.
“By seamlessly integrating identity verification with smart contract transparency, Verified Pools reduces counterparty risks while upholding the openness and efficiency of on-chain markets,” Coinbase stated in its announcement.
Built on Base and Uniswap v4
The pools leverage Base, Coinbase’s Ethereum-based Layer 2 network, to enhance transaction speed and lower costs. They are built using Uniswap v4, a decentralized exchange protocol that introduces customizable smart contract functionality.
Coinbase has partnered with Gauntlet, a risk management firm, to optimize liquidity configurations and improve overall pool health.
The non-custodial structure of Verified Pools ensures that users retain control over their assets while benefiting from the added security of a verified trading environment.
For retail traders, Verified Pools provides a streamlined experience for on-chain trading. By connecting to the pools through Coinbase Wallet, users can access verified liquidity, trade directly without intermediaries, and fully own their assets. The company positions the service as a safer alternative for traders navigating the complexities of DeFi.
The launch of Verified Pools comes as Coinbase continues to expand its offerings. The company plans to introduce 24/7 Bitcoin and Ethereum futures trading through its derivatives exchange in the coming weeks.
The new futures products will include perpetual-style contracts with extended expiration dates, broadening Coinbase’s presence in the crypto derivatives market.
As one of the largest digital asset exchanges, Coinbase accounted for $125.6 billion of February’s $1.77 trillion total monthly spot volume, according to The Block’s Data Dashboard. The firm’s latest initiatives reflect a strategic push to increase the adoption of on-chain finance while maintaining compliance with regulatory standards.
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