U.S. Marshals Service Chooses Coinbase Prime for Custody Services in $32.5M Contract
The U.S. Marshals Service (USMS), a division of the Department of Justice responsible for asset forfeiture, has partnered with Coinbase Prime, the brokerage platform of major crypto exchange Coinbase.
The collaboration aims to provide custody and trading services for the USMS’s large-cap cryptocurrency holdings, Coinbase said in a Monday blog post.
Per the announcement, Coinbase Prime was selected by the USMS based on its proven track record and ability to deliver institutional-grade crypto services.
Coinbase to Earn $32M From the Contract
Under the terms of the contract, the USMS will pay a substantial sum of $32.5 million.
As part of the agreement, Coinbase Prime will assume responsibility for managing and disposing of sizable quantities of popular cryptocurrencies held by the USMS.
Just announced: the U.S. Marshals Service selects Coinbase Prime to provide custody and advanced trading services for its large cap digital assets portfolio.
Read more about this partnership ↓https://t.co/6CCTz1EGQj pic.twitter.com/zM4R0giDrY
— Coinbase Institutional
(@CoinbaseInsto) July 1, 2024
The move solidifies Coinbase Prime’s reputation as a trusted custodian, with over $330 billion in assets safeguarded as of this year.
Coinbase Prime, a commercially available service, has emerged as the platform of choice for institutions and significant holders of digital assets since its launch nearly three years ago.
It has established itself as a primary partner for numerous spot cryptocurrency exchange-traded funds (ETFs).
In the first quarter of 2024 alone, Coinbase recorded an institutional trading volume of $256 billion.
In the blog post, Coinbase noted that it has a longstanding commitment to supporting law enforcement agencies, dating back to the establishment of its law enforcement program in 2014.
“Today, Coinbase works with every major U.S. federal, state, and local law enforcement agency, as well as international agencies on every continent. Growing the cryptoeconomy means promoting safe and efficient markets, and these partnerships are critical to our mission.”
The selection of Coinbase for custody services comes as the US government moved to sell 3,940 Bitcoin (worth around $240 million) seized from a narcotics trafficker in 2014 in the last week alone.
The US government has become one of the largest holders of Bitcoin, acquiring approximately 200,000 coins (worth around $5 billion) through seizures related to criminal activities
Coinbase’s Regulatory Hurdles
Meanwhile, Coinbase has also faced its fair share of regulatory trouble.
Back in April, Judge Katherine Polk Failla of the US District Court of the Southern District of New York ruled that the SEC’s lawsuit against Coinbase could proceed.
The Judge’s decision came after Coinbase filed a motion to dismiss the SEC case, which borders on allegations the exchange operates as an unregistered securities exchange, broker, and clearing agency.
More recently, Coinbase has accused the SEC and the Federal Deposit Insurance Corporation (FDIC) of improperly blocking its document requests.
The exchange alleges that the regulators are blocking access to documents that should be available under the Freedom of Information Act (FOIA).
Meanwhile, Bank of America (BAC) has recently upgraded its rating on Coinbase shares from underperform to neutral, raising its price target for Coinbase to $217 from $110.
Aside from Bank of America, investment banking firm KBW has also increased its Coinbase price target.
In a research analysis, KBW raised its Coinbase price target from $160 to $230 while maintaining its market performance rating.
The post U.S. Marshals Service Chooses Coinbase Prime for Custody Services in $32.5M Contract appeared first on Cryptonews.
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U.S. Marshals Service Chooses Coinbase Prime for Custody Services in $32.5M Contract
The U.S. Marshals Service (USMS), a division of the Department of Justice responsible for asset forfeiture, has partnered with Coinbase Prime, the brokerage platform of major crypto exchange Coinbase.
The collaboration aims to provide custody and trading services for the USMS’s large-cap cryptocurrency holdings, Coinbase said in a Monday blog post.
Per the announcement, Coinbase Prime was selected by the USMS based on its proven track record and ability to deliver institutional-grade crypto services.
Coinbase to Earn $32M From the Contract
Under the terms of the contract, the USMS will pay a substantial sum of $32.5 million.
As part of the agreement, Coinbase Prime will assume responsibility for managing and disposing of sizable quantities of popular cryptocurrencies held by the USMS.
Just announced: the U.S. Marshals Service selects Coinbase Prime to provide custody and advanced trading services for its large cap digital assets portfolio.
Read more about this partnership ↓https://t.co/6CCTz1EGQj pic.twitter.com/zM4R0giDrY
— Coinbase Institutional
The move solidifies Coinbase Prime’s reputation as a trusted custodian, with over $330 billion in assets safeguarded as of this year.
Coinbase Prime, a commercially available service, has emerged as the platform of choice for institutions and significant holders of digital assets since its launch nearly three years ago.
It has established itself as a primary partner for numerous spot cryptocurrency exchange-traded funds (ETFs).
In the first quarter of 2024 alone, Coinbase recorded an institutional trading volume of $256 billion.
In the blog post, Coinbase noted that it has a longstanding commitment to supporting law enforcement agencies, dating back to the establishment of its law enforcement program in 2014.
“Today, Coinbase works with every major U.S. federal, state, and local law enforcement agency, as well as international agencies on every continent. Growing the cryptoeconomy means promoting safe and efficient markets, and these partnerships are critical to our mission.”
The selection of Coinbase for custody services comes as the US government moved to sell 3,940 Bitcoin (worth around $240 million) seized from a narcotics trafficker in 2014 in the last week alone.
The US government has become one of the largest holders of Bitcoin, acquiring approximately 200,000 coins (worth around $5 billion) through seizures related to criminal activities
Coinbase’s Regulatory Hurdles
Meanwhile, Coinbase has also faced its fair share of regulatory trouble.
Back in April, Judge Katherine Polk Failla of the US District Court of the Southern District of New York ruled that the SEC’s lawsuit against Coinbase could proceed.
The Judge’s decision came after Coinbase filed a motion to dismiss the SEC case, which borders on allegations the exchange operates as an unregistered securities exchange, broker, and clearing agency.
More recently, Coinbase has accused the SEC and the Federal Deposit Insurance Corporation (FDIC) of improperly blocking its document requests.
The exchange alleges that the regulators are blocking access to documents that should be available under the Freedom of Information Act (FOIA).
Meanwhile, Bank of America (BAC) has recently upgraded its rating on Coinbase shares from underperform to neutral, raising its price target for Coinbase to $217 from $110.
Aside from Bank of America, investment banking firm KBW has also increased its Coinbase price target.
In a research analysis, KBW raised its Coinbase price target from $160 to $230 while maintaining its market performance rating.
The post U.S. Marshals Service Chooses Coinbase Prime for Custody Services in $32.5M Contract appeared first on Cryptonews.
Read More