Base Enables Private USDC Transactions via Iron Fish zk-SNARKs

Coinbase’s Layer 2 network Base is enabling private transactions for USDC through Iron Fish’s zk-SNARKs-based shielded pools. Acquired in March 2025, Iron Fish’s protocol uses zero-knowledge proofs and view keys to conceal sender, receiver and amounts on Base’s Ethereum L2. The system, integrated via ChainPort bridges and real-time threat detection, supports multi-asset privacy pools across 20+ blockchains and requires clean funds verification. View keys enable selective disclosure to auditors or regulators on demand, balancing privacy with compliance. While traders can leverage these private transactions to access deeper liquidity and execute discreet large trades, critics warn the “dark pool” model may attract regulatory scrutiny and challenge AML standards. The upgrade could boost stablecoin activity on Base but faces debate over true privacy in a KYC-regulated environment.