Coinbase Gains Favor with US Law Enforcement Partners to Offer Cryptocurrency Custody Services
The U.S. Marshals Service (USMS), a division of the Department of Justice, has announced that it has chosen Coinbase Prime to provide custody and “advanced trading services” for large digital assets.
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USMS Chooses Coinbase for Custody
USMS: Diverse Asset Seizure Types
USMS Chooses Coinbase for Custody
According to an announcement by Coinbase, the U.S. Marshals Service will pay $32.5 million to Coinbase Prime for custody services.
The announcement states:
The U.S. Marshals Service (USMS), the agency responsible for “asset seizure” within the Department of Justice, has announced that it has chosen Coinbase Prime. The USMS conducted a competitive due diligence process, evaluating a range of solutions, and ultimately chose Coinbase due to our strong track record and ability to securely provide institutional-grade crypto services at scale.
Coinbase emphasizes its long history of supporting law enforcement agencies, dating back to the establishment of its law enforcement program in 2014.
The announcement also mentions that Coinbase Prime, which has been launched for about 3 years, has become the preferred platform for institutions and holders, including being the primary partner for the majority of crypto spot ETFs. In the first quarter of this year, the institutional trading volume reached $256 billion.
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BlackRock Adopts Coinbase Prime for Institutional Crypto Services, COIN Stock Rises Over 40%
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USMS: Diverse Asset Seizure Types
The USMS announcement states that there is a specific need for “managing and disposing of large volumes of mainstream crypto assets” in this collaboration.
This will require the use of various leading custody and clearing technologies in the crypto industry, done in a professional, legal, and USMS policy-compliant manner. This contract will also streamline the custody and disposition process for crypto assets, while diversifying the types of crypto assets managed under the seizure program.
Further reading:
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