Coinbase has introduced a new service called Verified Pools, aimed at resolving key security and compliance challenges in the decentralized finance (DeFi) sector for institutional clients.
Addressing DeFi Institutional Concerns
Verified Pools tackle institutional hesitations by enforcing strict compliance checks, including KYC and sanctions screening, making access available only to identity-verified participants. This curated environment aims to mitigate counterparty risks and compliance issues that have traditionally kept large players at bay.
Powered by Coinbase’s Base
At the core of Verified Pools is Coinbase’s Base platform, an Ethereum Layer 2 solution offering fast, secure, and transparent transactions with minimal fees. Using Base enhances operational efficiency and ensures robust integrity, which is crucial for attracting institutional clients.
Non-Custodial Design and Asset Control
A key feature of Verified Pools is its non-custodial design, allowing institutional traders to retain full control over their assets. This is particularly important in an environment of increasing regulatory scrutiny, enabling investors to participate in liquidity pools without losing custody of their digital assets.
Coinbase's launch of Verified Pools could serve as a catalyst for bringing traditional finance into the on-chain world by offering a secure and controlled environment for engaging with decentralized finance.
