Frequently Asked Questions
What is Coinbase Custody?
Launched in 2018, Coinbase Custody offers clients access to the secure, institutional-grade offline storage solution that has been used by Coinbase’s exchange business since 2012. Coinbase Custody is an independent, NYDFS-regulated entity built on Coinbase’s crypto-first DNA, offering the most sophisticated and reliable custody solution in the world.
Is Coinbase Trust a regulated entity?
Yes. We are regulated by the New York Department of Financial Services (NYDFS), and operate as an independently capitalized entity, Coinbase Trust Company, LLC.
How is Coinbase Custody different from a traditional custodian?
While we offer a custody solution designed from the ground up for the unique challenges of storing crypto assets, we operate very similarly to traditional custodial services. We are overseen by the same regulators, held to the same capital requirements, and audited in the same way as a traditional financial custodian.
What crypto assets can I store with you?
We offer an array of assets and are always adding more. See our asset page for an up-to-date list of the assets you can store with Coinbase Custody.
Is Coinbase Trust a qualified custodian?
Yes, Coinbase Custody is a fiduciary under § 100 of the New York Banking Law and is licensed to custody its clients’ digital assets in trust on their behalf. As a New York state-chartered trust held to the same fiduciary standards as national banks, Coinbase Custody is a qualified custodian for purposes of § 206(4)-2(d)(6) of the Advisers Act, commonly called the custody role.
What is the global reputation of Coinbase’s regulator?
We work closely with our regulators (NYDFS) on a regular cadence to ensure that Coinbase Custody’s operations are legal and compliant. NYDFS is often considered a pioneer in its regulation of New York’s financial sector, one of the world’s largest and most respected. NYDFS was one of the first regulators to address the crypto space with the 2014 launch of the Bitlicense. Many other jurisdictions have since followed its lead. Coinbase treats all customer complaints/disputes seriously and views these as an opportunity to better serve our customer community and improve our services going forward. We would like the opportunity to resolve any concerns by contacting your relationship manager or client services representative. Unresolved complaints may be submitted to the New York State Department of Financial Services at http://www.dfs.ny.gov/consumer/fileacomplaint.htm
When was your insurance policy established?
Coinbase has held coverage continually since 2013.
Who is providing your insurance?
Coinbase’s insurance policy is provided by a global syndicate of A XV/A+ rated insurers, including Lloyd’s of London. It is coordinated by our broker of record, AON Risk Solutions.
What storage systems does your insurance cover?
Coinbase’s policy covers all storage methods. This includes hot, warm and cold storage. Read more about our insurance policy here or ask the Custody team for more information.
What percentage of assets intended to be covered by your policy are covered?
We carry an annually renewed commercial crime policy that carries a $320m limit (per-incident and overall), with Coinbase Global as the named insured.
Has Coinbase Inc or Coinbase Custody ever lost client funds?
No, Coinbase Custody’s cold storage solution uses the same cold storage architecture that has underpinned Coinbase, Inc.’s custody of $20+ billion in crypto assets for its retail customers over 7 years — all without incident.
How are funds stored?
In totally offline, cold storage. Coinbase Custody has designed a proprietary, best-in-class key generation protocol to generate cold storage addresses for Custody wallets.
How do you help clients have good security hygiene?
The security of our clients’ assets is our number one priority. We offer an array of account security configurations to suit your needs while ensuring the security of your account. Some features you can set up are M of N signatory consensus, address whitelisting, duress protocol setup, and many more.