Coinbase has launched Verified Pools, a new service aimed at reducing counterparty risk in decentralized finance (DeFi). These liquidity pools are exclusively accessible to users who complete the identity verification process, aligning with Coinbase's goal of enhancing safety for both retail and institutional participants. Powered by the Ethereum-centric Layer 2 network, Base, and utilizing the Uniswap v4 protocol, Verified Pools allows users to maintain control over their assets, as they are non-custodial. This KYC component is part of Coinbase's initiative to comply with regulations, particularly in regions like New York, and is designed to attract institutions that have been hesitant to engage with DeFi due to regulatory and security concerns. The service is initially available in several regions, including the U.S., Singapore, and the British Virgin Islands, and connects through Coinbase's institutional-grade Prime Onchain Wallet and other verified wallets. This product represents a significant move towards fostering a safer DeFi ecosystem for cryptocurrency trading.

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