US Marshals Service partnered with Coinbase Prime for a $32.5 million digital asset custody contract after thorough evaluation.
Coinbase Prime, with $330 billion in assets, supports law enforcement and offers top-tier security and institutional services.
The partnership aligns with Coinbase’s goal to promote safe markets amid SEC scrutiny of the crypto industry.
The US Marshals Service (USMS) has selected Coinbase Prime to safeguard and trade its large-cap digital assets. The custody services contract is valued at $32.5 million.
This decision follows a comprehensive due diligence process by the USMS, a division of the US Department of Justice. USMS is responsible for asset forfeiture.
Coinbase Prime and Institutional Trading
Coinbase Prime, a leading platform that helps institutions trade and store digital assets securely, was chosen for its strong track record and security features. Many institutional investors use the platform.
As of March 31, 2024, Coinbase safeguarded $330 billion in assets and recorded $256 billion in institutional trading volume in Q1 2024.
Coinbase has supported law enforcement since 2014, working with major US federal, state, and local agencies, as well as international agencies.
“Coinbase Prime continues to be trusted by the world’s largest institutions and governments because of the quality, security, and track record of our institutional product suite,” Coinbase said.
The US Marshals Service states the Coinbase contract will streamline the custody, management, and disposal of cryptocurrency assets.
Additionally, it enables diversification of the types of crypto assets managed and disposed of under the government’s forfeiture programs.
“Our system’s smart order routing minimizes the trade’s market impact and helps disguise the overall trade size. Working on an agency basis, clients can be sure our interests are aligned as we seek to find the best prices available in the market,” Coinbase shared in a statement.
The partnership aligns with Coinbase’s objectives and advocacy to promote safe and efficient markets in the growing crypto economy.
The company signed this contract amid an SEC crackdown on Coinbase and the crypto industry.
Meanwhile, Coinbase has also filed a lawsuit against the SEC and FDIC. Specifically, the exchange claims the lawsuit is to obtain documents on how regulators classify crypto tokens and their actions against the crypto industry.
