Coinbase CEO Brian Armstrong has confirmed on his X account that the company is preparing to introduce private stablecoin transactions on its Ethereum-based layer‑2 network, Base. Coinbase plans to achieve this using zero-knowledge (ZK) proofs developed by crypto privacy platform Iron Fish, which it acquired earlier this year.
Base is building private transactions.
— Brian Armstrong (@brian_armstrong) October 21, 2025
We acquired the Iron Fish team back in Mar 2025 to start working on this. More to share soon. https://t.co/ZzRHZRH9yN
The new feature will allow users to send and receive stablecoins while keeping transaction amounts and wallet addresses confidential. However, Armstrong emphasized that regulators will still have read‑only access to ensure that transactions comply with anti‑money‑laundering and other financial regulations.
How the privacy mechanism will work
On traditional blockchains, transactions are fully transparent, anyone can see the sender, recipient, and amount. Base’s upcoming privacy model changes this by integrating Iron Fish’s zero‑knowledge proof system. ZK proofs enable users to validate that a transaction is legitimate without revealing any underlying details, such as wallet identities or amounts transferred.
Under this framework, users will gain cryptographic privacy over their data, while regulatory entities can access limited “view‑only” information when necessary. This dual‑layer structure is designed to maintain accountability while protecting user privacy.
Iron Fish joins Base to scale privacy solutions
The partnership comes as part of a larger development: Iron Fish’s core team has joined the Base ecosystem to help scale privacy technology for millions of users. According to the project’s official announcement, the Iron Fish Foundation will remain independent, continuing to support the Iron Fish network as a cross‑chain privacy pool across dozens of blockchains.
Over six years, Iron Fish has built a reputation for deploying advanced cryptographic privacy protocols. Its innovations include the Multi‑Asset Shielded Pool (MASP) and use of zero‑knowledge proofs to encrypt transactions without compromising network integrity. The protocol is already integrated with 27 other chains through its partnership with ChainPort, offering sanction screening on every transaction to ensure “only clean funds” enter the network.
Balancing privacy and transparency
The issue of privacy remains highly contentious in the crypto industry. Platforms offering privacy features, such as Tornado Cash or Samourai Wallet, have faced enforcement actions in multiple jurisdictions. Coinbase’s design aims to set a precedent for privacy with compliance, showing that confidentiality can exist alongside oversight.
Armstrong stated that Base’s architecture would give regulators access to verify transactions without breaching user confidentiality. This careful balance could make privacy‑preserving stablecoins more acceptable to institutions and policymakers while still meeting increasing demands for data protection.
Why private stablecoins matter for crypto’s future
Stablecoins, which maintain a 1:1 peg to fiat currencies, are a cornerstone of the digital asset market. They are used for cross‑border payments, decentralized finance (DeFi), and hedging against volatility. Yet their transparency can expose sensitive financial information. With private stablecoin transactions, businesses can make transfers without revealing amounts or counterparties, improving both security and competitive privacy.
Moreover, institutional participants, such as payment firms and enterprises, may find private transactions particularly attractive because they combine blockchain efficiency with confidentiality safeguards.
What’s next for Base and Iron Fish
According to Armstrong, Coinbase plans to roll out private stablecoin transfers later in 2025, though no exact date has been announced. Once deployed, Base could become the first widely adopted layer‑2 network to offer this mix of privacy, auditability, and regulatory readiness.
Iron Fish’s integration signals Coinbase’s long‑term commitment to embedding privacy directly into the infrastructure layer, rather than treating it as an add‑on feature. The Iron Fish Foundation will continue developing educational content, research initiatives, and cross‑chain integration efforts to expand privacy coverage across assets.
As the crypto industry continues to navigate between transparency demands and user privacy expectations, Coinbase’s Base network and Iron Fish’s technology could mark a new phase, one where private, compliant stablecoin transactions become a core standard for blockchain payments.
Matvii Diadkov
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