The U.S. Marshals Service (USMS), the enforcement arm of federal courts, has awarded a $32.5 million contract to Coinbase Prime to provide custody and advanced trading services for large-cap digital assets. The USMS, part of the Department of Justice, selected Coinbase Prime after a competitive due diligence process that assessed various solutions.
Coinbase Prime will offer institutional-grade crypto services, ensuring the secure custody and management of significant cryptocurrency holdings. “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 stated on Monday.
The agency outlined its specific needs for managing and disposing of large quantities of popular cryptocurrency assets. This involves using multiple, industry-leading storage and liquidation techniques in a manner that aligns with Department and USMS policy. The contract aims to streamline custody, management, and disposal processes for cryptocurrency assets while allowing for diversification of the types of assets managed under the government’s forfeiture programs.
This contract comes at a time when Coinbase is facing regulatory challenges with the U.S. Securities and Exchange Commission (SEC). The SEC sued Coinbase last year for operating its platform without proper registration, a case currently progressing through the courts. In a parallel move, Coinbase has recently sued several federal agencies, including the SEC, accusing them of attempting to cut off the crypto industry from the banking sector.
The USMS’s decision to partner with Coinbase Prime underscores the importance of secure and efficient management of cryptocurrency assets by federal agencies. As Coinbase navigates its regulatory challenges, this contract highlights its robust capabilities and institutional trust within the digital asset space.
