The US Marshals Service (USMS) has selected Coinbase Prime to safeguard and trade its large-cap digital assets. The custody services contract is valued at a substantial $32.5 million.

This decision follows a comprehensive due diligence process by the USMS, a division of the US Department of Justice responsible for asset forfeiture.

Why Coinbase Prime?

Coinbase Prime, a leading platform that helps institutions trade and store digital assets securely, was chosen for its strong track record and robust security features.

Many institutional investors rely on the platform. As of March 31, 2024, Coinbase safeguarded $330 billion in assets and recorded $256 billion in institutional trading volume in the first quarter of 2024. This extensive experience in handling large sums made Coinbase Prime an ideal choice.

Coinbase's Law Enforcement Support

Since 2014, Coinbase has supported law enforcement by working with major US federal, state, and local agencies and international agencies.

"Coinbase Prime continues to be trusted by the world's largest institutions and governments because of our institutional product suite's quality, security, and track record," Coinbase told BeInCrypto.

Streamlined Asset Management

The US Marshals Service states that the Coinbase contract will streamline the custody, management, and disposal of cryptocurrency assets.

Additionally, it enables diversification of the types of crypto assets managed and disposed of under the government's forfeiture programs. This new partnership aims to make the process more efficient and secure.

"Our system's smart order routing minimizes the trade's market impact and helps disguise the overall trade size. Working on an agency basis, clients can be sure our interests are aligned as we seek to find the best prices available in the market," Coinbase shared in a statement.

Broader Context and SEC Scrutiny

The partnership aligns with Coinbase's objectives and advocacy to promote safe and efficient markets in the growing crypto economy. The company signed this contract amid an SEC crackdown on Coinbase and the crypto industry.

Meanwhile, Coinbase has also filed a lawsuit against the SEC and FDIC. Specifically, the exchange claims the lawsuit is to obtain documents on how regulators classify crypto tokens and their actions against the crypto industry.