The U.S. Marshals Service (USMS) has selected Coinbase Prime to provide custody and liquidation services for high-capitalization cryptocurrencies.
Just announced: the U.S. Marshals Service selects Coinbase Prime to provide custody and advanced trading services for its large cap digital assets portfolio.
Read more about this partnership ↓https://t.co/6CCTz1EGQj pic.twitter.com/zM4R0giDrY
— Coinbase Institutional ?️ (@CoinbaseInsto) July 1, 2024
“USMS conducted a competitive process, evaluating various solutions, and ultimately chose Coinbase due to our strong reputation and ability to securely provide institutional-level cryptocurrency services at scale,” the exchange stated.
In its application, the agency warned applicants of several requirements for “managing and disposing of large volumes of popular crypto assets” under confiscation programs.
Under the terms, USMS awards the contract to the winner for five years, with an option to extend for six months. According to The Block, the platform will earn $32.5 million for providing services to the government agency.
Coinbase noted that it has been collaborating with law enforcement since launching its compliance program in 2014.
Representatives of the exchange also emphasized that in nearly three years of operation, Coinbase Prime has become the “preferred choice” for institutions and large digital asset holders, including issuers of most spot crypto ETFs.
As of March 31, Coinbase held virtual currencies totaling $330 billion.
Back in June 2023, the exchange found itself in a legal battle with the SEC, which filed a lawsuit with several allegations against it.
Coinbase, in turn, sued the Commission, as well as the FDIC, for attempts to “cut off” the crypto industry from the banking sector.