Coinbase to hold crypto for the US government 

The United States Marshals Service will use Coinbase Prime for digital asset custody and trading

The U.S. Marshals Service (USMS), a division of the Department of Justice, has chosen Coinbase Prime to securely store and trade its “Class 1” (large cap) digital assets, marking a noteworthy development for the U.S. crypto space.

The USMS reportedly reviewed several options before selecting Coinbase through a competitive due diligence process. Coinbase stood out for its strong track record and its capacity to provide secure, institutional-grade cryptocurrency services on a large scale.

Large-cap digital assets such as Bitcoin (BTC), Ethereum (ETH), and other top-tier cryptocurrencies by market value are typically considered “Class 1” assets by the U.S. Marshals Service. These high-value cryptocurrencies require secure custody and advanced trading services.

These assets may have been confiscated from illegal activities or originated from other types of government contracts.

Since 2014, Coinbase has consistently collaborated with a wide range of agencies through its law enforcement program.  Today, Coinbase works closely with every major U.S. federal, state, and local law enforcement agency and international agencies on all continents. 

Coinbase Prime 

Coinbase Prime, a publicly available service, has been the platform for institutions and large holders of digital assets for nearly three years. As of March 31, 2024, Coinbase safeguarded $330 billion in assets and recorded $256 billion in institutional trading volume in Q1 2024.

The USMS’s decision to partner with Coinbase Prime shows that institutional trust in and reliance on Coinbase’s services is increasing. It also indicates a growing belief that cryptocurrency is a legitimate and viable asset in the eyes of the U.S. government.