Markets
Coinbase Wins $32.5M Crypto Contract From US Government
The largest cryptocurrency exchange registered in the United States, Coinbase, has signed a $32.5 million deal with the U.S. Marshals Service of the Department of Justice to provide custody and trading of its digital assets.
The U.S. Marshals Service is a federal agency that conducts asset forfeiture, including cryptocurrency forfeiture, and makes the custody of cryptocurrency and the security of seized digital assets an essential part of its mission.
“Coinbase has a long history of supporting law enforcement, dating back to the founding of our law enforcement program in 2014,” the company announced in a blog postCoinbase Prime, the company’s institutional cryptocurrency arm, will be responsible for the secure storage of U.S. Marshals Service cryptocurrency and the sale, trading, or exchange of high-value cryptocurrency on behalf of the U.S. Marshals Service.
The U.S. Marshals Service said it will “manage and dispose of large quantities of popular cryptocurrencies.”
Coinbase said it has partnered with “all major U.S. federal, state, and local law enforcement agencies,” as well as foreign agencies across Europe, Asia, Africa, and Latin America.
“Growing the crypto economy requires fostering safe and efficient markets, and these partnerships are critical to our mission,” Coinbase said.
The United States government remains the largest holder of cryptocurrencies at the nation-state level, holding over $13.8 billion in cryptocurrency, according to Arkham Intelligence. Market analysts are strongly monitor U.S. government cryptocurrency transfers, due to their large volume and potential impact on cryptocurrency markets. Earlier this week, both the U.S. and German governments moved large volumes of cryptocurrencies, with repercussions on the markets.
In June, Germany began liquidating part of its $2.8 billion in cryptocurrenciesdownloading more than 195 million dollars in a single day – pushing the price of bitcoin down by approximately 3.5% consequentially.