Buterin’s Trust Play: Non-Custodial Base Could Cement Ethereum’s Scalability Vision

September 23, 2025

Ethereum co-founder Vitalik Buterin has highlighted the potential for Coinbase’s Base layer-2 (L2) solution to retain its non-custodial structure, a move that could align with Ethereum’s Layer 1 (L1) infrastructure to facilitate direct withdrawals. This insight emerged amid Buterin’s broader remarks on the growing competition among L2 solutions, which are racing to scale transaction throughput and attract decentralized finance (DeFi) activity.

Base, which operates on the Optimism OP stack, has recently demonstrated a throughput of 160 transactions per second (TPS), positioning it as a key player in the L2 ecosystem. Buterin’s endorsement underscores the project’s technical advancements and its role in Ethereum’s broader scalability strategy. Analysts suggest that Base’s non-custodial design—where users maintain control of their assets—could enhance trust in the platform, particularly as Ethereum’s L1 continues to optimize gas efficiency and reduce congestion.

The L2 arms race has intensified, with projects like Arbitrum, Starknet, and Base vying for dominance in the DeFi and NFT spaces. According to data from DeFiLlama, Base’s total value locked (TVL) has surged to $20 billion, reflecting its appeal to developers and users seeking lower fees and faster finality. Buterin’s comments imply that Ethereum’s L1 could further support these L2s by enabling direct withdrawals without intermediaries, a feature that would streamline cross-chain interactions and reduce reliance on custodial bridges.

Coinbase’s strategic focus on Base aligns with its vision to integrate DeFi and traditional finance. The platform has already launched a range of native tokens and partnerships aimed at expanding its ecosystem. However, challenges remain, including competition from other L2s and regulatory scrutiny. Buterin’s analysis suggests that a non-custodial Base could mitigate these risks by adhering to Ethereum’s core principles of decentralization and user sovereignty.

While Buterin’s remarks are not a formal endorsement, they highlight a growing consensus among Ethereum developers that L2 solutions must remain interoperable with L1 to ensure long-term viability. This approach could also address scalability bottlenecks, as L2s handle the bulk of transactions while L1 serves as a settlement layer. For Coinbase, maintaining Base’s non-custodial model may strengthen its credibility in the DeFi space, where trust in centralized entities remains a critical concern.

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