Coinbase Launches Verified Pools in Singapore, US for On-Chain Liquidity Transparency

Coinbase has announced the launch of Verified Pools to enhance security and transparency by ensuring only verified participants can contribute liquidity.

By only allowing access to vetted individuals and institutions, Coinbase aims to create a more reliable onchain trading environment while reducing risks associated with anonymous or unverified counterparties.

"At its core, Verified Pools represents a breakthrough in onchain liquidity, leveraging Coinbase Verifications, our KYC-integrated verification system," Coinbase said in an announcement.

Verified Pools leverage a combination of identity verification and smart contract transparency to minimize counterparty risk

"By seamlessly integrating identity verification with smart contract transparency, Verified Pools reduces counterparty risks while upholding the openness and efficiency of onchain markets," Coinbase explained.

Verified Pools is currently open to users in the U.S., Singapore, Netherlands, British Virgin Islands, Cayman Islands, and the Channel Islands.

Participants can access these pools using Coinbase’s institutional-grade Prime Onchain Wallet, Coinbase Wallet, or any other wallet that carries a Coinbase Verifications credential.

The pools are built on Coinbase’s Layer 2 network, Base, which offers scalability and lower transaction costs. They also incorporate Uniswap v4, a widely used developer platform for decentralized trading, and risk management optimizations from Gauntlet, a firm specializing in onchain financial modeling.

Last month, Vermont withdrew its “show cause order” against Coinbase, following the US Securities and Exchange Commission’s (SEC) recent decision to drop its case against the crypto exchange.

Vermont Withdraws Case Against Coinbase Following in SEC’s Footsteps

Vermont drops its case against Coinbase after the SEC withdrew its lawsuit. Coinbase urges other states to follow, pushing for clear crypto rules

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In February, the SEC dropped its lawsuit against Coinbase in what the exchange described as a change in “political leadership” at the agency.

According to Coinbase’s chief legal officer, Paul Grewal, the SEC has agreed “in principle” to dismiss the lawsuit, which accused the exchange of failing to register as a securities platform.