Coinbase, Exchanges

Does Coinbase Provide Custody?

As the world’s largest cryptocurrency exchange, Coinbase is often thought of as the most reliable place to buy and sell digital assets. But does Coinbase provide custody?

The answer is both yes and no. Coinbase does offer a custodial service for institutional investors, but it is not available to individual investors.

For institutional investors, Coinbase Custody is a service that provides secure storage of digital assets. Coinbase Custody is a regulated entity and is subject to various compliance requirements, including Know Your Customer (KYC) and Anti-Money Laundering (AML) rules.

Coinbase Custody is a fiduciary, which means that it has a legal responsibility to act in the best interests of its clients. This includes safeguarding client assets and providing transparent reporting.

Coinbase Custody is one of the few custodial services that is insured against theft and loss. The insurance policy covers up to $255 million worth of digital assets stored by Coinbase Custody.

For individual investors, Coinbase does not offer custody services. This is because individual investors are not subject to the same compliance requirements as institutional investors.

Individual investors can still store their digital assets on Coinbase, but they will not have the same level of protection as they would if they used Coinbase Custody.

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