Coinbase wins favor from the US Marshals Service, partners to provide cryptocurrency custody services

The U.S. Marshals Service (USMS), a division of the Department of Justice, has announced that it has selected Coinbase Prime to provide custody services for large digital assets and "advanced trading services."

U.S. Marshals Service Chooses Coinbase for Custody

According to an announcement from 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, has announced the selection of Coinbase Prime. USMS conducted a competitive diligence process, evaluating a range of solutions, and ultimately chose Coinbase for our strong business track record and ability to securely provide institutional-grade crypto services at scale.

Coinbase emphasizes the company's longstanding history of supporting law enforcement agencies, dating back to the establishment of a law enforcement program in 2014.

The announcement also mentions that Coinbase Prime, launched approximately three years ago, has become the preferred platform for institutions and holders, including being the primary partner for the vast majority of cryptocurrency spot ETFs, with institutional trading volume reaching $256 billion in the first quarter of this year.

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U.S. Marshals Service: Diversifying Seized Asset Types

The U.S. Marshals Service's announcement highlights the specific need for "managing and disposing of large amounts of mainstream crypto assets" in this collaboration.

This will require the use of leading custody and clearing technologies in the crypto industry, conducted in a professional, legal, and USMS policy-compliant manner. This contract will also streamline the custody and disposal process of crypto assets, while diversifying the types of crypto assets managed under asset seizure programs.