US Marshals Service Partners With Coinbase Prime for Custody of Digital Assets

By: Eva Baxter

The US Marshals Service (USMS), a branch of the US Department of Justice (DOJ), has appointed Coinbase Prime to securely manage and trade its high-value digital assets, as per an announcement made on July 1. This decision arises from an extensive due diligence process aimed at identifying the most suitable solution for handling the agency's 'Class 1' digital assets.

The USMS highlighted the importance of professional and lawful asset management practices, underscoring the necessity for policy-compliant handling of digital assets. The selection process employed a trade-off method to ensure the government received the best value, with Coinbase's institutional-grade crypto services and impressive track record proving decisive factors.

The contract, managed by the Asset Forfeiture Division (AFD), outlines the secure handling of seized digital assets. In compliance with DOJ and USMS policies, Coinbase Prime will be responsible for deploying storage and liquidation techniques. The aim is to enhance the custody, management, and disposal processes for these assets while broadening the spectrum of digital assets overseen by the government's forfeiture programs.

This agreement, designed as a single-award Indefinite Delivery/Indefinite Quantity (IDIQ) contract, spans an initial five-year ordering period, with the potential for a six-month extension. Since the inception of its law enforcement program in 2014, Coinbase has worked closely with various US federal, state, and local law enforcement agencies, as well as international agencies.

Coinbase Prime's extensive role includes acting as the primary partner for several spot crypto ETFs and managing $330 billion in assets as of March 31. Additionally, the exchange recorded $256 billion in institutional trading volume in the first quarter of 2024, underscoring its vital position in the digital asset market.

This collaboration with the USMS marks a significant step forward in Coinbase's ongoing mission to enhance the security and operational efficiency of digital asset management for institutional clients.