US Marshals Service picks Coinbase to custody its assets as part of a $32.5 million contract by Sarah Wynn COMPANIES • July 1, 2024, 11:59AM EDT
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* The U.S. Marshals Service, which is a part of the Department of Justice, said it chose Coinbase Prime to provide custody and “advanced trading services” for large-cap digital assets.
* The agency has said it has a specific requirement for “managing and disposing of large quantities of popular cryptocurrency assets.”
The U.S. Marshals Service, the enforcement arm of federal courts, is paying $32.5 million for a contract with Coinbase Prime to provide custody.
The agency, a part of the Department of Justice, said it chose Coinbase Prime to provide custody and "advanced trading services" for large-cap digital assets.
"The USMS conducted a competitive due diligence process that evaluated a range of solutions, ultimately choosing Coinbase due to our strong track record and ability to securely provide institutional-grade crypto services at scale," Coinbase said in a statement on Monday.
USMS said it has a specific requirement for "managing and disposing of large quantities of popular cryptocurrency assets," according to a previous statement about the opportunity for a contract.
"This will require the use of multiple, industry leading, storage and liquidation techniques employed in a manner that is professional, lawful, and consistent with Department and USMS policy," the agency said. "This contract will also streamline custody, management, and disposal processes for cryptocurrency assets while allowing for the diversification of the type of cryptocurrency assets that can be managed and disposed of under the Government’s forfeiture programs."
The contract comes as Coinbase has been in hot water with the U.S. Securities and Exchange Commission. That agency sued Coinbase last year for operating its platform without registering and is making its way through the courts.
Coinbase also sued federal agencies, including the SEC, as recently as last week. The exchange accused federal financial regulators of trying to cut off the crypto industry from the banking sector in the complaints.
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