Coinbase Quietly Launches Verified Pools Targeting Institutional Investors

On March 18, 2025, the firm introduced Verified Pools, designed to tackle key security and compliance challenges that have long kept large players on the sidelines of decentralized finance (DeFi).

Coinbase has quietly launched a new service to cater to the institutional sector.

On March 18, 2025, the crypto giant introduced Verified Pools, an offering designed to mitigate key security and compliance issues that have traditionally limited the involvement of large players in decentralized finance (DeFi).

The service is a direct response to the specific concerns of institutions. Verified Pools will be subject to strict Know Your Customer (KYC), and sanctions screening, ensuring that only identity-verified participants can access the liquidity pool.

This curated setup aims to alleviate fears of counterparty risk and non-compliance that often arise with traditional liquidity pools. Coinbase will use its own proprietary verification system to create a trusted trading environment, combining the flexibility of DeFi with the crucial safeguards that institutions demand.

Addressing Key Institutional Concerns for DeFi

Powered by Base, Coinbase's Ethereum Layer 2 platform, these pools promise rapid trades with minimal fees.

The service's non-custodial design ensures that traders retain complete control over their assets. This is a critical factor for institutions who are increasingly wary of losing custody of their assets.

This mix of speed, security, and ownership could be the tipping point for heavyweights who have been hesitant to enter the DeFi space.

Coinbase is planning to expand asset options, add more trading pairs, and eventually facilitate global use of the service. There are also plans for integration with decentralized exchange aggregators.

As cryptocurrencies are subject to tighter regulations, services like Verified Pools position Coinbase as a frontrunner in compliant and accessible platforms for the institutional sector.

Coinbase's Base for Efficient Transactions

At the heart of Verified Pools is Base, Coinbase's Layer 2 solution for Ethereum. This platform is designed for executing transactions quickly, securely, and transparently while maintaining low fees.

Being used for Verified Pools, Base provides the benefit of native on-chain infrastructure, which optimizes efficiency and operational integrity. This integration is crucial in today's competitive market, where speed and transparency are paramount for institutional adoption.

The choice of Base highlights Coinbase's dedication to building a scalable and reliable ecosystem. With Base, transactions within Verified Pools are not only faster but also benefit from the inherent security of Ethereum's blockchain architecture.

This combination of speed, security, and transparency is integral for attracting institutions who demand the highest standards from their financial platforms.

Non-Custodial Design and Asset Control

Another defining aspect of Verified Pools is its non-custodial design. Unlike many platforms that require users to relinquish control of their assets, Coinbase's new service allows institutional traders to retain full custody over their assets.

This means that investors can participate in the liquidity pools without the risk of losing control over their digital assets—a factor of paramount importance for many large-scale players.

Retaining asset control is becoming increasingly crucial as institutions face more significant regulatory scrutiny.

This unique service design ensures that while institutions enjoy the benefits of pooled liquidity and efficient on-chain transactions, they do not compromise on asset safety, which is a priority.

The ability to keep direct control over funds further enhances trust and makes the service more appealing to those accustomed to traditional financial models and their strong safeguards.