The crypto exchange aims to enhance security and regulatory compliance in DeFi markets with its new Verified Pools service.
Coinbase has introduced Verified Pools, a new liquidity pool service designed to bring enhanced security and compliance to decentralized finance (DeFi) trading. The service, announced on Tuesday, is available exclusively to users who have completed Coinbase’s Know Your Customer (KYC) verification process.
Introducing Coinbase Verified Pools, a trusted way to seamlessly trade onchain.
— Coinbase 🛡️ (@coinbase) March 18, 2025
Dive in. ↓ pic.twitter.com/rddrniaXu8
Verified Pools function as non-custodial liquidity pools, meaning users retain control over their assets while participating in on-chain trading. The feature is powered by Base, Coinbase’s Ethereum-centric Layer 2 network, and leverages the Uniswap v4 protocol to optimize efficiency and liquidity provision.
Coinbase is marketing Verified Pools as a way to reduce counterparty risk and offer a safer environment for both institutional and retail traders. This move aligns with the growing push for compliance-friendly DeFi solutions that enable institutional adoption while maintaining the core advantages of decentralized markets.
The pools are connected via Coinbase’s institutional-grade Prime Onchain Wallet, Coinbase Wallet, or any wallet verified through Coinbase Verifications. Users who wish to participate must complete Coinbase’s KYC process, ensuring that only verified individuals and institutions can access the liquidity pools.
Expanding DeFi Access with Regulatory Compliance
Initially, Verified Pools will be available in select jurisdictions, including:
- United States
- Singapore
- Netherlands
- British Virgin Islands
- Cayman Islands
- Channel Islands
By requiring KYC verification, Coinbase aims to bridge the gap between traditional finance and DeFi, providing institutions with a regulated pathway to enter decentralized markets. This development follows concerns from financial entities about the risks of engaging in non-compliant DeFi ecosystems.
Coinbase’s Growing Influence in DeFi and Beyond
The launch of Verified Pools is just one of several strategic moves Coinbase has made recently to solidify its position in the crypto market. The company is preparing to launch 24/7 Bitcoin and Ethereum futures trading on its Coinbase Derivatives platform, along with perpetual-style futures in the U.S., which will introduce extended expiration dates.
Coinbase’s favorable position under the pro-crypto policies of the Trump administration has further strengthened its market outlook. Following the SEC’s decision to drop its lawsuit against the exchange, Coinbase now has greater freedom to expand its offerings in the U.S.
By integrating KYC-verified liquidity pools into DeFi trading, Coinbase is taking a significant step toward a more regulated, institution-friendly decentralized ecosystem. While purists in the crypto space may see this as a move away from full decentralization, it could pave the way for broader mainstream adoption of DeFi services.
With Verified Pools, Coinbase is positioning itself as a leader in compliance-focused DeFi solutions, potentially setting a new standard for decentralized trading in regulated markets.
HODL Team
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