The US Marshals Service (USMS) has partnered with Coinbase Prime to manage and trade large-cap digital assets worth $32.5 million. The deal follows a thorough evaluation process by the USMS, a division of the US Department of Justice responsible for asset forfeiture.
Coinbase Prime is chosen for its strong track record and security features, as it is a leading platform for institutions to trade and store digital assets securely. As of March 31, 2024, Coinbase held $330 billion in assets and had $256 billion in institutional trading volume for Q1 2024.
The USMS stated that the Coinbase contract will streamline the custody, management, and disposal of cryptocurrency assets, allowing for a wider range of crypto assets to be managed and disposed of under the government’s forfeiture programs.
This partnership aligns with Coinbase’s goal to promote safe and efficient markets amid increased scrutiny from the Securities and Exchange Commission (SEC) on the crypto industry. The USMS highlighted the benefits of Coinbase’s system, particularly its smart order routing that minimizes market impact and conceals the overall trade size.
Despite regulatory challenges from the SEC, this partnership is a significant win for Coinbase. The company continues to deliver secure and reliable services to large institutions and government agencies, demonstrating its ability to navigate regulatory landscapes while expanding its institutional offerings. Coinbase’s experience in supporting law enforcement and managing large-scale digital assets was key to securing this contract.
This partnership underscores the importance of strong security measures and reliable infrastructure in handling significant amounts of digital assets. Coinbase’s smart order routing system minimizes the impact of large trades on the market, ensuring the best prices while maintaining trade confidentiality.
