Coinbase lands $32.5 million U.S. government crypto contract

   2024-07-02 18:07

America’s largest registered crypto exchange, Coinbase, has inked a $32.5 million deal with the Justice Department’s U.S. Marshals Service to provide custody and trading of its digital assets.

The U.S. Marshals Service is a federal agency dealing with asset forfeiture, including the forfeiture of crypto assets, making crypto custody and the security of its seized digital assets an essential part of its mission.

“Coinbase has a longstanding history of supporting law enforcement agencies, dating back to the founding of our law enforcement program in 2014,” the company announced in a blog post. Coinbase Prime, the firm’s institutional crypto arm, will be responsible for securely storing the U.S. Marshal Service’s crypto and selling, trading, or exchanging high-value cryptocurrencies on behalf of the U.S. Marshals Service.

U.S. Marshals Service says it will be “managing and disposing of large quantities of popular cryptocurrency assets.”

Coinbase said it has partnered with “every major U.S. federal, state, and local law enforcement agency,” alongside foreign agencies spread across Europe, Asia, Africa, and Latin America.

“Growing the cryptoeconomy means promoting safe and efficient markets, and these partnerships are critical to our mission,” Coinbase said.

The U.S. government remains the largest holder of crypto at the nation-state level, holding over $13.8 billion in cryptocurrency, according to Arkham Intelligence. Market analysts strongly monitor transfers of U.S. government crypto holdings, due to their large volume and potential impact on crypto markets. Earlier this week, both the U.S. and German governments moved large volumes of cryptocurrency, sending reverberations across markets.

In June, Germany started liquidating a portion of its $2.8 billion in crypto holdings, dumping more than $195 million in a single day – prompting the price of bitcoin to dip approximately 3.5% as a result.

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