Coinbase has announced that it will cease DAI deposits and withdrawals across three significant Layer 2 and alternative networks. This change will take effect on August 17, 2026, meaning users will no longer be able to transact DAI through Avalanche, Arbitrum, or Optimism on the platform. While transactions on Ethereum's mainnet will remain possible, users relying on these faster, cheaper networks need to reconsider their current workflows.
#What are the key changes to DAI transactions?
Coinbase first indicated this upcoming alteration on July 13, 2026, and provided a reminder shortly before the deadline on August 12. After the specified date, any attempts to deposit or withdraw DAI using Avalanche, Arbitrum, or Optimism via Coinbase will be unsuccessful. It is important to highlight that DAI will not be eliminated from trading on Coinbase. The exchange only facilitates deposits and withdrawals of the token across particular networks, meaning this action revolves around limiting the channels for DAI transactions rather than a trading pair delisting.
For users who have DAI on the affected networks, transitioning their tokens to Ethereum is necessary to continue using Coinbase after the cutoff. Alternatively, users may opt to withdraw their DAI to self-custody wallets on the impacted networks and manage their assets outside Coinbase entirely.
#Why is Coinbase making these changes?
DAI, managed by MakerDAO, serves as a decentralized stablecoin designed for multi-blockchain use. Pegged to the US dollar and backed by crypto-related collateral, DAI has primarily seen transaction activity on Ethereum. Thus, the decision to maintain support for this network while discontinuing others aligns logically with activity volume considerations.
Although Arbitrum, Optimism, and Avalanche provide faster and cheaper transactions than Ethereum's mainnet, Coinbase must evaluate whether sufficient DAI transactions take place through these networks to justify ongoing support.
#What should DAI users be aware of?
The immediate impact of these changes will be felt by users who depend on Coinbase for DAI transactions through the aforementioned networks. If this matches your situation, adjustments must be made by August 17, 2026. Bridging DAI to Ethereum before this date presents the simplest option. Conversely, those who prefer to withdraw DAI to a self-custody wallet on any of the affected networks can manage their assets externally.
Coinbase is not limiting support exclusively to DAI; they are also discontinuing support for USDC on the Noble network and cbETH across various Layer 2 networks on the same date. This shift indicates an ongoing strategy by Coinbase to systematically streamline its network support for several tokens, signaling a trend rather than a singular adjustment.