Introducing Verified Pools by Coinbase
Coinbase has recently launched Verified Pools, a revolutionary Know-Your-Customer (KYC)-verified liquidity pool that aims to boost DeFi adoption while minimizing counterparty risks.
Enhanced On-Chain Liquidity Access
This innovative initiative offers both institutional and retail traders compliant access to on-chain liquidity, ensuring a secure trading environment.
Verified Pools: A Closer Look
Verified Pools enable users to link their wallets—be it Coinbase Wallet, Prime Onchain Wallet, or third-party wallets—to a Coinbase Verifications credential. This credential acts as a trust badge, verifying users before they can interact with liquidity pools.
The pools are constructed on Base, Coinbase’s layer-2 blockchain, and utilize Uniswap v4 to enhance smart contract functionality. Additionally, Coinbase has joined forces with Gauntlet, a risk management platform, to optimize liquidity pool configurations and uphold market health.
Currently, Verified Pools are accessible to users in select regions, including the United States, Singapore, the Netherlands, the British Virgin Islands, the Cayman Islands, and the Channel Islands.
Increasing Institutional Interest in Crypto
The launch of Verified Pools aligns with the escalating interest from institutional investors in the realm of digital assets.
A recent report by Coinbase and EY-Parthenon indicated that institutional investors are looking to expand their exposure to digital assets by 2025. The survey, conducted in January and encompassing insights from over 350 institutional investors, revealed that most already hold crypto and plan to allocate a minimum of 5% of their portfolios to digital assets.
Key Findings from the Report
- Institutional investors view crypto as a lucrative opportunity for risk-adjusted returns in the next three years.
- While Bitcoin maintains its dominance, investors are diversifying into altcoins like Solana and XRP.
- Interest in digital assets could witness a surge with the potential approval of spot altcoin ETFs in the US.
- Greater regulatory clarity is expected to drive institutional sentiment towards digital assets, unlocking new opportunities in crypto custody.
