As the world’s largest cryptocurrency exchange, Coinbase has been a reliable and popular choice for buying and selling Bitcoin, Ethereum, and other digital assets since its launch in 2012. Recently, however, some users have raised questions about whether or not Coinbase has custody of their funds.
In short, yes, Coinbase does have custody of customer funds. When you create a Coinbase account and deposit money into it, that money is then held in a custodial account at an FDIC-insured bank.
This means that if Coinbase were to go out of business, your money would still be safe and you would be able to withdraw it from your account.
However, it’s important to note that because Coinbase is a custodial service, you do not have full control over your funds. This means that you cannot withdraw from your account without Coinbase’s approval, and that you are also subject to their policies and terms of service.
While this may not be a problem for most users, it’s something to keep in mind if you are looking for a fully decentralized experience with complete control over your funds.