Although Coinbase has long offered centralized trading services, the company on October 9, 2025 launched on-chain decentralized exchange (DEX) trading for U.S. users on its Base Layer 2 network, rolling the feature out at 9 AM PT and enabling access for all states except New York. The rollout, integrated directly within the Coinbase app, required only a few clicks for eligible users and introduced trading that preserves user control of private keys, thereby reducing counterparty risk compared with custodial models. The initial launch included native Base activity and added specific assets such as the LINEA token, alongside SYND and NOICE-USD spot pairs, signaling an intent to support both established and emerging tokens. Observers note the move expands asset availability beyond Coinbase’s traditional centralized listings, enabling on-chain price discovery and settlement. The technical foundation rests on Base, a low-fee Ethereum Layer 2 that supports faster transactions and substantially lower gas costs than the Ethereum mainnet, which improves usability for retail traders who may be sensitive to fees and latency. This integration leverages rollup technologies to enhance scalability and reduce network congestion. Transactions execute on-chain, meaning settlement and order matching interact with on-chain liquidity, and Coinbase’s interface communicates with users’ on-chain wallets while maintaining an in-app experience. No additional account or complex setup was required for most U.S. customers, and the integration aims to enable access to millions of on-chain assets that centralized exchanges typically do not list. Rapid expansion of listed assets is anticipated as on-chain liquidity develops. This product positions Coinbase as the first major U.S. exchange to offer direct, compliant on-chain DEX trading, creating a competitive bridge between traditional finance, centralized crypto exchanges, and decentralized-only platforms. The offering leverages Base’s cost advantages to challenge incumbents, while combining CEX and DEX features in one application to attract a broader user base. Regulatory considerations remain salient, as New York users were excluded and the on-chain model shifts some compliance responsibilities to users, which could prompt further regulatory discussion. Market watchers view the rollout as a milestone for Layer 2 adoption and a potential precedent for other exchanges, though they caution that on-chain risks and evolving regulation warrant careful monitoring. The launch also integrates liquidity provision from external DEX infrastructure such as 1inch and 0x, enabling secure non-custodial swaps directly in-app. Coinbase also launched a separate on-chain DEX on Base the same day to enable immediate access to newly minted tokens.
