The US Marshals Service (USMS) has recently selected Coinbase Prime to safeguard and trade its large-cap digital assets, with the contract valued at $32.5 million. This decision came after a thorough due diligence process conducted by the USMS, a division of the US Department of Justice responsible for asset forfeiture. Coinbase Prime, a platform known for helping institutions securely trade and store digital assets, was chosen for its strong track record and security features, with many institutional investors already using the platform. As of March 31, 2024, Coinbase had safeguarded $330 billion in assets and recorded $256 billion in institutional trading volume in Q1 2024.
Coinbase has a history of supporting law enforcement since 2014, working with major US federal, state, and local agencies as well as international agencies. The USMS stated that the partnership with Coinbase will streamline the custody, management, and disposal of cryptocurrency assets, allowing for diversification of the types of crypto assets managed under government forfeiture programs. Coinbase’s smart order routing system aims to minimize market impact and disguise trade size, with clients assured that their interests align with those of Coinbase as the platform seeks to find the best prices available in the market.
This partnership aligns with Coinbase’s goals of promoting safe and efficient markets in the growing crypto economy, despite recent challenges such as an SEC crackdown on Coinbase and the crypto industry. Coinbase has also filed a lawsuit against the SEC and FDIC, aiming to obtain documents on how regulators classify crypto tokens and their actions against the industry. Despite these challenges, Coinbase continues to focus on providing quality, security, and a strong track record for its institutional product suite. The USMS decision to collaborate with Coinbase showcases the trust placed in the platform by some of the world’s largest institutions and governments.
As part of the growing crypto industry, Coinbase aims to continue advocating for safe and efficient markets while providing top-notch services to institutional clients. This partnership with the US Marshals Service highlights the increasing adoption of digital assets by government agencies and the importance of reliable custody and trading solutions in the crypto market. Coinbase’s role in supporting law enforcement and facilitating the management of cryptocurrency assets further solidifies its position as a trusted partner for institutions seeking reliable and secure digital asset services.
