Coinbase to Launch Private Stablecoin Trading on Base L2
Coinbase will roll out private stablecoin trading on its Base Layer 2 network. The feature is built by a dedicated Iron Fish privacy pod acquired in March 2025. It uses zero-knowledge proofs and view keys for selective transaction disclosure, and ChainPort’s bridge for secure cross-chain transfers. Although users must complete KYC checks and can share view keys for compliance, the system enhances on-chain confidentiality on Base L2. This move taps growing demand for privacy amid tightened AML and CTF rules. Privacy coins ZEC, XMR and DASH have surged as research shows only 7% of their transactions are illicit. Coinbase’s privacy trading could boost Base’s adoption and reshape stablecoin trading in DeFi.
Bullish
Coinbase’s integration of privacy trading on Base L2 is likely bullish. In the short term, the announcement may drive increased on-chain activity on Base, boosting transaction volumes and demand for ETH used for fees on the network. Traders may view privacy features as a competitive edge, attracting new users and capital flows into Base. In the long term, enhanced confidentiality could solidify Base’s position among Layer 2 solutions, support growth in stablecoin transactions and stimulate broader DeFi adoption. The move also underpins positive sentiment for privacy coins, potentially sustaining demand for ZEC, XMR and DASH. Overall, the development aligns with rising demand for on-chain privacy and signals healthy growth prospects for the Base ecosystem and related tokens.