The U.S. Marshals Service (USMS) has chosen Coinbase Prime to safeguard and trade its “Class 1” (large cap) digital assets. This decision by a division of the U.S. Department of Justice comes after a thorough evaluation process.
What This Means for Coinbase and the Crypto Industry
This partnership marks a major milestone for Coinbase and the broader cryptocurrency sector. Coinbase will provide custody and advanced trading services for USMS’s large-cap digital assets.
Coinbase announced that the selection was made after a competitive due diligence process. This new partnership adds to Coinbase’s long history of supporting law enforcement agencies, which dates back to 2014.
Over the years, Coinbase Prime has become a preferred platform for institutions and large crypto holders. It is also the primary partner for most spot crypto ETFs.
The numbers speak to Coinbase’s growing influence in the institutional crypto space. As of March 31, 2024, Coinbase was safeguarding $330 billion in assets. The exchange also recorded $256 billion in institutional trading volume in Q1 2024 alone.
This collaboration between a major U.S. government agency and a crypto exchange demonstrates the growing institutional acceptance of cryptocurrencies.
For Coinbase, this deal further cements its position as a trusted partner for large institutions and government agencies dealing with crypto.
Interestingly, the announcement comes at a time when Coinbase has filed a lawsuit against the SEC and the FDIC under the Freedom of Information Act. The exchange is seeking information regarding three closed cases, including that of Ethereum (ETH).
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