Institutional and Retail Investors Gain Access to Verified Liquidity
Coinbase has unveiled Verified Pools, a groundbreaking initiative aimed at enhancing security, transparency, and efficiency in onchain trading. By enabling institutional investors and verified traders to access trusted liquidity providers, Verified Pools marks a significant step forward in bridging traditional finance with blockchain markets.
Unlike conventional liquidity pools, which often lack identity verification, Verified Pools prioritize security by ensuring that only authenticated participants engage in trading activities. This approach reduces counterparty risk, fosters institutional adoption, and streamlines onchain financial operations.
A New Era of Institutional Onchain Trading
Coinbase’s Verified Pools introduce a more structured and controlled approach to onchain liquidity. The feature allows financial institutions, hedge funds, and other high-volume traders to participate in decentralized trading with added safeguards, including:
- Identity Verification – Participants must undergo authentication to access pools, ensuring trust in trading counterparties.
- Transparent Smart Contracts – Trading conditions are governed by pre-audited, secure contracts, eliminating hidden risks.
- Non-Custodial Trading – Institutions retain full ownership of their crypto assets while transacting within Verified Pools.
The feature currently supports nine Verified Pools across jurisdictions such as the U.S., Singapore, Netherlands, British Virgin Islands, Cayman Islands, and Channel Islands. Users can connect to Verified Pools through Coinbase Wallet, Prime Onchain Wallet, or external third-party wallets using the Coinbase Verifications credential—a trusted badge in the onchain trading ecosystem.
Built on Uniswap v4 and Base Layer-2
Verified Pools operate on Uniswap v4, a widely adopted decentralized exchange (DEX) protocol. The pools integrate with Base, Coinbase’s layer-2 scaling network, ensuring fast and low-cost transactions.
Additionally, Coinbase has partnered with Gauntlet, a leading risk modeling firm, to monitor liquidity behavior and optimize pool efficiency. Institutions using Verified Pools can set custom price ranges for liquidity supply, improving capital efficiency while minimizing impermanent loss risks.
Expanding Accessibility in Onchain Markets
Coinbase aims to redefine onchain trading by making it more accessible and secure for institutions and retail investors alike. Through Verified Pools, users can:
- Directly trade with verified liquidity providers without intermediaries.
- Authenticate counterparties, ensuring every transaction is fully transparent and compliant.
- Retain full control over digital assets in a decentralized yet secure environment.
As the demand for institutional-grade crypto solutions grows, Verified Pools could become a catalyst for broader onchain adoption, reinforcing the legitimacy of DeFi in regulated finance. With seamless API connectivity, institutional traders can provide liquidity efficiently, further solidifying Coinbase’s role in shaping the future of onchain finance.