As crypto ETFs receive SEC approval, Coinbase Custody is emerging as a trusted custodian of digital assets using advanced security and regulatory compliance.
Coinbase Custody, a vital division of leading cryptocurrency exchange Coinbase, is increasingly recognized as the custodian of choice for a number of recently approved spot bitcoin ETFs, setting a new standard in digital asset safety. After the US Securities and Exchange Commission (SEC) gave these ETFs the green light, the focus on how digital assets are stored and protected has intensified, and institutional investors are acceptance note about Coinbase’s robust security measures.
Proven security history
Coinbase’s custodial service boasts a zero-error tolerance policy, reflecting more than a decade of secure asset management. As of Q4 2023, Coinbase Custody is securely holding $193 billion in digital assets, underscoring its capacity to protect large-scale holdings. This level of security is the result of employing world-renowned applied researchers and significant investment in cryptographic key separation techniques, physical security and tight operational controls.
Strict compliance with regulatory requirements and audit
As a trustee under New York State law, Coinbase Custody Trust Company, LLC (CCTC) is subject to strict regulations by the New York Department of Financial Services (NYDFS), strengthening confidence in him. In addition, public company status mandates regular audits, ensuring that client assets are managed with the utmost integrity. These measures are complemented by SOC 1 Type II and SOC 2 Type II reviews, which confirm that Coinbase has appropriate controls in place to protect customer assets and platform security.
Insurance and legal separation of funds
Understanding the importance of financial protection, Coinbase maintains a robust commercial crime insurance policy that is considered one of the largest in the industry, covering theft from hot and cold wallets. Client funds are legally segregated, which provides bankruptcy remoteness by ensuring that custodial assets are isolated from the financial condition of Coinbase or any other client.
Integrating custody with efficient trading
The institutional-grade custody service provided by Coinbase is designed to seamlessly meet the operational needs of ETF providers and institutional clients. With integrated trading and settlement capabilities, clients can efficiently manage their assets, benefit from advanced trading algorithms and access customized execution strategies.
Commitment to the crypto economy
Underscoring its commitment to the crypto space, Coinbase offers custody of over 400 assets across 38 blockchains. Their service extends beyond simply holding assets, allowing customers to fully engage with the crypto-economy, including earning rewards by staking and participating in management decisions.
Expert leadership
Coinbase Custody’s success is due in part to the expertise of Alan Leung, the current CISO, who has led the business since 2018. With a background in cybersecurity, Leung’s experience with reputable institutions such as Blue Cross Blue Shield and Citibank has been critical in maintaining and improving the measures for platform security.
As the world of digital assets continues to evolve, Coinbase’s commitment to safety, compliance and innovation makes it a key player in the cryptocurrency ecosystem, ensuring that as the market grows, the safety and security of digital assets remains in capable hands.
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