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.
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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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