COIN - Coinbase Wins U.S. Government Crypto Contract

2024-07-03 09:41:55 ET

%Coinbase (NASDAQ: ), the largest %Cryptocurrency exchange in America, has been awarded a $32.5 million U.S. contract to provide custody and trading services for the crypto assets held by the U.S. Justice Department.

Specifically, Coinbase will manage the cryptocurrency that’s in the possession of the U.S. Marshals Service, a division of the U.S. Justice Department.

The Marshals Service is a federal agency that deals with asset forfeitures, including crypto. This makes the custody and security of seized cryptocurrency critically important.

Under terms of the contract, Coinbase Prime, the company’s institutional arm, will securely store the Marshal Service's cryptocurrency, as well as sell, trade and exchange the digital assets.

Partnering with law enforcement is not new for Coinbase Global. The company says it has partnered with “every major U.S. federal, state, and local law enforcement agency.”

The U.S. government is among the largest holders of cryptocurrency worldwide with more than $13.80 billion U.S. on its books.

Analysts closely watch transfers of U.S. government cryptocurrency holdings due to their potential impact on prices and markets.

The stock of Coinbase has risen 185% over the last 12 months as cryptocurrency prices and trading volumes have increased sharply. The stock currently trades at $227.51 U.S. per share.