Plain English
Coinbase Custody is the institutional custody business within Coinbase, operating as a NY DFS limited-purpose trust company. Custodies the majority of US spot Bitcoin ETF assets (BlackRock’s IBIT, Bitwise BITB, Grayscale GBTC, ARK ARKB). $300B+ in custody at peak.
How it actually works
Cold storage with HSM-protected keys, geographically distributed across multiple secure facilities. SOC 1 Type 2 and SOC 2 Type 2 audited. Insurance up to $320M. Supports staking on PoS assets while in custody. Direct integration with Coinbase Prime for trading and lending.
What it means for you
For US HNW principals, family offices, and institutional crypto holders, Coinbase Custody is the largest and most-used qualified custodian. Pair with Coinbase Prime for execution and lending services. Trade-off is concentration — many large investors are with Coinbase, creating systemic exposure if Coinbase faces issues.
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Educational content only. Not investment, tax, or legal advice.