Coinbase has unveiled a new liquidity solution called Verified Pools which aims to make on-chain trading safer and more transparent for institutional and retail users.
The feature, which was announced on Mar. 18, lowers counterparty risks while preserving decentralization by combining identity verification with liquidity pools. Decentralized finance has made it possible for users to trade assets without the need for middlemen, but because fund providers are anonymous, liquidity pools have often been risky.
To solve this, Verified Pools requires users to link their Coinbase Wallet, Prime Onchain Wallet, or third-party wallets using a Coinbase Verifications credential. This gives on-chain transactions an extra layer of trust by ensuring that liquidity providers are verified.
Based on the Uniswap (UNI) v4 protocol, Verified Pools uses “hooks” to enable advanced smart contract functionality, allowing trading features that can be customized. Additionally, the platform has teamed up with Gauntlet to optimize the health of the liquidity pool.
Transactions occur on Base, Coinbase’s layer-2 network, which helps reduce costs and improve speed. Currently, Verified Pools is available in the U.S., Singapore, the Netherlands, the British Virgin Islands, the Cayman Islands, and the Channel Islands.
For institutions, Verified Pools offers concentrated liquidity and controlled access, ensuring only verified users can supply or trade assets. For a safer trading environment, institutions can communicate through APIs or Prime Onchain Wallet.
Retail traders can also use Verified Pools for direct, intermediary-free trading with verified liquidity. Users can transact while maintaining complete control over their assets by linking a wallet.
The launch comes at a time of renewed interest in Coinbase. A Bernstein Research analysis, as reported by Yahoo Finance on Mar. 18, predicted that Coinbase stock could rise more than 60% and hit $310, citing favorable U.S. regulatory changes. The report called Coinbase the “Amazon of crypto” and emphasized its strong position as a leader in the crypto infrastructure.
Trump’s recent pro-crypto initiatives, such as his executive order to establish a Bitcoin reserve, have also raised hopes for the industry’s future. As Coinbase grows its on-chain ecosystem, it appears ready to take advantage of these developments.
