The goal of the initiative is to boost user privacy on public blockchains through zero-knowledge proofs while still maintaining regulatory compliance. Meanwhile, lending protocol Aave partnered with Maple Finance to integrate its yield-bearing stablecoins, syrupUSDC and syrupUSDT, connecting institutional capital with decentralized liquidity.
Coinbase Eyes Private Stablecoin Payments
Coinbase CEO Brian Armstrong revealed that his company is getting closer to making private stablecoin transactions on its Ethereum layer-2 network, Base, a possibility. This is a huge step toward greater privacy in blockchain transactions.
In a post that was shared on X, Armstrong said “Base is building private transactions,” and also mentioned that Coinbase’s acquisition of the crypto privacy platform Iron Fish earlier this year is a key part of that mission. The move could give users a much-needed way to transact without exposing their financial activity on public blockchains, which are typically transparent by design.
While many in the crypto community welcomed the development, some questioned whether Coinbase’s new privacy system will include Know Your Client (KYC) checks that could limit user anonymity. Armstrong did not comment on those concerns, and said that more details will be shared later.
Privacy in crypto is a very contentious issue. Some users see it as vital to protecting financial data and preventing targeted attacks. On the other hand, regulators often view it as a potential avenue for illicit activity. The tension led to harsh crackdowns on privacy projects, including the arrest and prosecution of Tornado Cash developers Alexey Pertsev and Roman Storm, and Samourai Wallet’s founders Keonne Rodriguez and William Lonergan Hill.
Despite Armstrong’s comments, it is possible that Base’s upcoming privacy feature will not be entirely opaque. Iron Fish’s current implementation uses zero-knowledge proofs and “view keys,” which allow users to verify transactions privately but still disclose information when required by authorities. This means that users can keep their activity hidden from the public, but can still provide read-only access to tax agencies or enforcement bodies if necessary. The approach attempts to balance user privacy with regulatory compliance, which has proven quite difficult for other projects in the past.
Iron Fish’s network uses crosschain bridge ChainPort, and already supports privacy transactions across more than 20 blockchains, including Base itself. Through ChainPort, Iron Fish enables a privacy version of wrapped USDC and employs real-time threat detection to ensure that only legitimate funds enter the network.
While the full details of Coinbase’s implementation are still not known, the integration could be one of the most meaningful steps yet toward privacy-preserving crypto transactions.
Maple Stablecoins Join Aave
In other stablecoin-related news, Aave formed a strategic partnership with on-chain credit platform Maple Finance to bridge institutional capital with decentralized liquidity. The integration was announced on Tuesday, and will bring Maple’s yield-bearing stablecoins, syrupUSDC and syrupUSDT, to the Aave ecosystem.
SyrupUSDC will be listed in Aave’s core market, while syrupUSDT will debut in its Plasma instance. Both tokens are backed by assets from Maple’s institutional credit pools, which collectively manage billions of dollars in capital from allocators and borrowers.
According to Maple, the goal of the collaboration is to stabilize borrowing demand and enhance capital efficiency across Aave’s markets. Aave allows users to deposit crypto to earn yield or borrow against their holdings via smart contracts, and expects that integrating Maple’s collateral will help diversify its liquidity base and strengthen overall market resilience. Although the precise scale of institutional inflows remains to be seen, the move forms part of the growing trend of traditional capital entering DeFi through compliant, yield-generating instruments.
Currently, Aave commands over $39 billion in total value locked (TVL), while Maple Finance holds about $2.78 billion, according to DefiLlama data. The timing of the partnership also aligns with Aave’s preparations for its highly anticipated V4 upgrade, which is set to launch in late 2025. The update will introduce a modular “hub-and-spoke” architecture that is designed to enable shared liquidity, new risk management tools, and a more efficient liquidation engine.
Maple’s TVL growth over the years (Source: DeFiLlama)
Maple Finance’s growth this year has been very impressive. In fact, the protocol’s TVL jumped from $296.9 million at the start of 2025 to $2.78 billion, driven largely by rising institutional use of stablecoins and tokenized real-world assets. Binance Research recently reported that decentralized lending protocols surged over 70% this year, as institutions increasingly use stablecoins for on-chain financing. Maple’s expansion also extended beyond Ethereum. In June, the company deployed its syrupUSD stablecoin on Solana with $30 million in initial liquidity.
The rebound is a major turnaround for Maple, which faced turbulence in 2022 after the FTX-Alameda collapse and subsequent loan defaults linked to entities like Orthogonal Trading.
