Coinbase Preps for the Merge, Warns Users of Interruptions

Ether and ERC-20 token deposits and withdrawals will be paused during the Merge

article-image

Source: DALL·E

share

key takeaways

  • Coinbase Wallet expected to experience minimal, if any, impact
  • ETH2 will be locked until the Ethereum protocol upgrade completes

Coinbase will briefly pause new ether (ETH) and ERC-20 token deposits and withdrawals as a precautionary measure during the Merge, which has a rough target date of Sept. 15.

Armin Rezaiean-Asel, product manager at Coinbase, outlined what users can expect from the company ahead of the Merge, in a Tuesday blog post. He said the planned “downtime” will permit the platform to verify a successful transition from proof-of-work (PoW) to proof-of-stake (PoS) on the Ethereum mainnet.

“Your assets will be safe and secure during this period and no action is required to upgrade on your part.”

As for staked ETH, the company advises users to be on high alert for scams and warns against sending ETH to anyone in an attempt to “upgrade to ETH2.” Coinbase allows its users to stake their ETH via the company’s Beacon Chain validators, which currently hold 14.7% of all staked ether, according to Dune Analytics.

Ether staked with Coinbase will remain listed within a user’s Ethereum wallet on the platform, but will remain locked after the Merge — as it is today — until the Ethereum protocol’s Shanghai upgrade is completed in 2023.

Users of different Coinbase products will be impacted differently.

Coinbase Wallet users with ETH and ERC-20 balances, as well as non-fungible tokens (NFTs) or decentralized finance (DeFi) positions on the Ethereum network, are expected to experience minimal to no impact. 

Coinbase Prime users, on the other hand, may experience temporary delays in custody withdrawal availability of their ETH and ERC-20 balances.

Coinbase Cloud users should expect a routine upgrade with approximately 10 minutes of downtime in advance of the Merge. Additionally, the ability to process new payments will be temporarily paused during the Merge for Coinbase Commerce customers.

Other cryptoassets are not expected to be impacted across Coinbase’s trading products, added Rezaiean-Asel.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.png

Research

Content Delivery Networks (CDNs) represent low-hanging fruit in a massive market ripe for Web3-driven disruption. The global CDN market was valued at ~$28B in 2024, and is projected to surpass $140B by 2034, (18.75% CAGR) underscoring the immense demand for efficient content delivery.

article-image

In crypto investing, quantity has a quality all its own.

article-image

REX and Osprey prep to launch their Solana staking ETF

article-image

A 40% allocation to crypto today is safer than a 1% allocation was in 2021, Ric Edelman argues

article-image

The wallet doesn’t have enough memory for more apps and features but should still function, the company says

article-image

The proof-of-work L1 is betting on parallel-chain scaling, low fees, and a $50 million grant program to lure Solidity developers and tokenized RWA issuers

article-image

Sponsored

Injective is not waiting for the future of finance. It is bringing it directly to us, today.