Coinbase has launched Verified Pools, a new service aimed at institutional traders. This service provides a secure and efficient on-chain liquidity solution.
Verified Pools offer high liquidity while ensuring strict identity verification, including KYC and sanctions screening. This compliance is crucial for addressing common concerns of institutional investors, such as counterparty risk and regulatory issues.
Unlike traditional liquidity pools, which may lack security for large investors, Coinbase’s Verified Pools require all participants to undergo identity verification. This feature is designed to attract financial institutions and large traders who prioritize trust and transparency in their trading activities.
A key advantage of these pools is their non-custodial nature. Users maintain full control over their assets while enjoying institutional-grade liquidity. This reduces the risks associated with centralized custody, as there is no need to rely on third parties to manage assets.
Verified Pools utilize Coinbase’s Base Layer-2 blockchain, which enhances transaction speed and reduces costs while ensuring high security. This Ethereum-based infrastructure improves transaction efficiency without sacrificing decentralization. By integrating Verified Pools into its offerings, Coinbase strengthens its role in the on-chain financial sector.
In addition to compliance and security, Verified Pools provide a transparent trading experience. Participants can trade assets directly on-chain, which enhances accessibility and decreases reliance on centralized exchanges. This initiative represents a significant step in connecting traditional finance with the decentralized economy.
Coinbase’s Verified Pools also align with global regulatory trends, as financial institutions seek stronger oversight in crypto transactions. By implementing strict verification standards, Coinbase aims to set a benchmark for managing institutional liquidity in the decentralized finance (DeFi) space.
