Coinbase is preparing to make private stablecoin transactions possible on its Ethereum Layer-2 network, Base, according to CEO Brian Armstrong. The move could bring stronger privacy to public blockchains, where every transaction is visible.
Armstrong revealed the plan in a post on X (formerly Twitter), saying, “Base is building private transactions.” He added that Coinbase’s earlier acquisition of Iron Fish, a crypto privacy platform, was part of that mission.
Base is building private transactions.
We acquired the Iron Fish team back in Mar 2025 to start working on this. More to share soon. https://t.co/ZzRHZRH9yN
— Brian Armstrong (@brian_armstrong) October 21, 2025
While Armstrong didn’t address whether the new feature will require Know Your Customer (KYC) checks, he said more details will be released soon.
Why Privacy Matters in Crypto
Privacy has long been a tricky topic in the crypto world. Many users want the ability to keep their financial data private and protect themselves from hackers or scammers. Public blockchains, while transparent, make it easy for anyone to track wallet activity.
At the same time, governments have cracked down on privacy tools linked to illegal activity. Developers of Tornado Cash and Samourai Wallet have faced legal action, raising questions about how privacy can coexist with regulation.
How Iron Fish’s Tech Works
Iron Fish uses zero-knowledge proofs (ZK-proofs) and “view keys” to give users privacy while allowing them to share data when required. A view key lets someone, such as a tax authority, see transaction details without exposing all information publicly.
We’re incredibly proud of all that we’ve built:
👉 L1 PoW with custom algo (Fish Hash)
👉 Encrypted transactions via ZKPs
👉 First privacy L1 to ship Multi-Asset Shielded Pool (MASP)
👉 First L1 to have private multisig wallets via FROST DKG
👉 First to have Ledger…— Iron Fish (@ironfishcrypto) March 6, 2025
The Iron Fish system also connects through ChainPort, a bridge with real-time threat detection that blocks suspicious funds. It already supports privacy transactions on over 20 blockchains, including Base, and even offers a private version of wrapped USDC.
And now we’re excited to bring our privacy expertise to Base’s rapidly growing ecosystem to accelerate economic freedom through privacy at scale.
Base is uniquely positioned to onboard millions, and we want to ensure privacy will be the standard, not the exception. pic.twitter.com/FkDFAmAsUY
— Iron Fish (@ironfishcrypto) March 6, 2025
By bringing Iron Fish’s privacy tools to Base, Coinbase could help shape a middle ground, privacy with accountability. If successful, this could make Base one of the most secure and compliant privacy layers in crypto.
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