Coinbase Eyes Private Stablecoin Transactions on Base Network

Coinbase CEO Brian Armstrong revealed on Tuesday that his team is working to enable private stablecoin transactions on the company’s Ethereum layer-2 network, Base, a move that could mark a major step toward improving financial privacy on public blockchains.

“Base is building private transactions,” Armstrong announced in a post on X, confirming that Coinbase’s acquisition of the crypto privacy platform Iron Fish earlier this year is central to the plan. The company purchased Iron Fish in March to bolster its privacy technology stack and support confidential blockchain activity within regulatory limits.

While Armstrong did not elaborate on technical or regulatory details, many respondents questioned whether the system would still require Know Your Client (KYC) checks. The Coinbase chief did not address those concerns directly but said more information would be released soon.

Balancing Privacy and Compliance

Privacy-focused crypto features are a growing demand among users seeking greater control over their personal data. Private transactions can help shield financial information from public view, reduce the risk of being targeted by hackers or scammers, and restore a level of confidentiality that traditional banking offers.

However, privacy in crypto has long been a contentious topic. Several developers behind privacy-oriented tools have faced legal challenges in recent years, highlighting the tension between innovation and regulation in the space. 

This includes Tornado Cash creators Alexey Pertsev and Roman Storm, as well as Samourai Wallet founders Keonne Rodriguez and William Lonergan Hill.

Iron Fish’s Controlled Privacy Model

Despite Armstrong’s announcement, Base’s privacy solution may not be fully private if it builds on Iron Fish’s existing framework. As per the Iron Fish website, the platform uses zero-knowledge proofs (ZK-proofs) to conceal transaction details while still enabling selective disclosure through “view keys.”

These view keys allow users to grant read-only access to tax authorities or law enforcement when required. Transactions remain confidential to the public, but regulators can still obtain necessary data when warranted.

Iron Fish’s system also integrates ChainPort, a cross-chain bridge that uses real-time threat detection to ensure only verified, “clean” funds enter its network. The platform already supports privacy features across more than 20 blockchains, including Base, where it powers a privacy-enabled version of wrapped USDC.

As Coinbase continues to navigate the line between user privacy and regulatory oversight, the project could signal a new chapter in crypto infrastructure.