US Marshals Service picks Coinbase Prime to custody ‘Class 1’ digital assets US Marshals Service picks Coinbase Prime to custody ‘Class 1’ digital assets
Coinbase Prime will implement storage and liquidation techniques in compliance with both DOJ and USMS policies.
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Updated: Jul. 1, 2024 at 8:46 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The US Marshals Service (USMS), a division of the US Department of Justice (DOJ), has chosen Coinbase Prime to safeguard and trade its large-cap digital assets portfolio, according to a July 1 press release.
According to the contract, the decision follows a comprehensive competitive due diligence process that evaluated various solutions for managing the agency’s “Class 1” digital assets. The USMS emphasized the necessity of professional, lawful, and policy-compliant handling of these digital assets.
The selection process focused on identifying a partner capable of providing the best value to the government, employing the trade-off method for evaluation. Coinbase’s robust track record and ability to offer institutional-grade crypto services at scale were significant factors in their selection.
The contract, issued on behalf of the Asset Forfeiture Division (AFD), addresses the USMS’s need for secure handling of seized digital assets. Coinbase Prime will implement storage and liquidation techniques in compliance with both DOJ and USMS policies.
The collaboration aims to streamline the custody, management, and disposal processes for crypto while also expanding the range of digital assets managed under the government’s forfeiture programs.
The contract is structured as a single-award Indefinite Delivery/Indefinite Quantity (IDIQ) agreement with an initial ordering period of five years and includes the possibility of a six-month extension.
Coinbase has actively supported law enforcement agencies since the establishment of its law enforcement program in 2014. The company collaborates with every major US federal, state, and local law enforcement agency, as well as international agencies worldwide.
Coinbase Prime’s role as the primary partner for numerous spot crypto ETFs and its management of $330 billion in assets as of March 31. The exchange reported $256 billion in institutional trading volume in the first quarter of 2024, reflecting its significant role in the digital asset market.
The partnership with the USMS marks another milestone in Coinbase’s ongoing efforts to enhance the security and efficiency of digital asset management for institutional clients.
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Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.