Search
Close this search box.

US Marshals Service Signs Custody Contract with Coinbase

After a thorough review, the U.S. Marshals Service (USMS) chose Coinbase Prime to secure and trade its large-cap digital assets.

On July 1st, the US Marshals Service, an agency within the US Department of Justice, announced that it had signed a custody contract with Coinbase, the largest cryptocurrency exchange in the country. The US authorities will pay $32.5 million to have Coinbase oversee their assets and provide “additional advanced trading services.”

A Coinbase representative stated, “After a thorough evaluation of various solutions, the US Marshals Service chose Coinbase for our institutional-grade crypto custody experience and capabilities.”

Interestingly, the contract also includes provisions for the “liquidation of large amounts of popular cryptocurrencies” as part of government seizure programs.

Recently, US government crypto wallets have frequently transferred funds to exchanges, causing some investors to fear large-scale sell-offs. According to Arkham, the US still holds $13.8 billion in crypto assets seized from illegal activities. This includes 213,534 BTC ($13.4 billion), 50,524 ETH ($174.2 million), 121 million USDT, and many other altcoins.

U.S. Marshals Service chooses Coinbase to safeguard digital assets

Some find the custody agreement between the US Marshals Service and Coinbase surprising, as Coinbase is currently being sued by the US Securities and Exchange Commission (SEC) for allegedly providing unlicensed securities services. In response, Coinbase has countersued the SEC, claiming that the commission is intentionally hindering the crypto industry’s growth.

Share:

New Post

Read more

Bitcoin ETFs see record inflows in July, signaling strong investor sentiment and driving Bitcoin, Ethereum, and altcoins higher.
Mastercard integrates its API with Alchemy Pay to enhance security for crypto solutions, reducing fraud with advanced machine learning and boosting user protection.
Some firms have proposed business practices that the SEC agrees could exempt them from controversial crypto accounting guidance, according to an SEC source.