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U.S. Marshals Tap Coinbase for Crypto Custody Needs
The U.S. is relying on Coinbase an awful lot despite SEC aggression against it.
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The U.S. Marshals Service (USMS), part of the Department of Justice, has selected Coinbase Prime, the brokerage platform of the crypto exchange giant, to provide custody and trading services for its large-cap crypto holdings.
What's the scoop?
- After a due diligence process, the USMS chose Coinbase for its track record and ability to provide institutional-grade crypto services. The USMS is paying $32.5 million for the contract.
- Accordingly, Coinbase Prime will handle the management and disposal of large quantities of popular crypto assets for the USMS, which is responsible for managing the DOJ’s crypto seizures.
- The deal is the latest high-profile relationship for Coinbase Prime, which safeguards over $330 billion in assets as of this year.
Bankless take:
This partnership highlights the increasing integration of crypto services within traditional federal operations. However, it comes at a time when Coinbase is embroiled in legal disputes with the SEC, adding a layer of complexity to its operations and regulatory standing. This backdrop of regulatory challenges, including recent Supreme Court decisions, suggests a turbulent path ahead for the enforcement of crypto regulations and the roles of federal agencies in this evolving landscape.