The US Marshals Service (USMS), a division of the US Department of Justice (DOJ), has selected Coinbase Prime to protect and trade its portfolio of large digital assets, according to a July 1 press release.
According to the contract, the decision follows an extensive competitive due diligence process that evaluated various solutions for managing the agency’s “Class 1” digital assets. The USMS emphasized the need for professional, lawful and policy-compliant handling of these digital assets.
The selection process focused on identifying a partner that can provide the best value to the government, using the trade-off method of evaluation. Coinbase’s robust track record and ability to offer institutional-quality crypto services at scale were important factors in their selection.
The contract, issued on behalf of the Asset Forfeiture Division (AFD), addresses the USMS’s need for secure processing of seized digital assets. Coinbase Prime will implement storage and liquidation techniques in accordance with both DOJ and USMS policies.
The partnership aims to streamline crypto custody, management and disposal processes while expanding the range of digital assets managed under government forfeiture programs.
The contract is structured as a one-time indefinite delivery/indefinite quantity (IDIQ) agreement with an initial order period of five years and the option of a six-month extension.
Coinbase has actively supported law enforcement agencies since establishing its law enforcement program in 2014. The company works with all major U.S. federal, state, and local law enforcement agencies, as well as international agencies around the world.
Coinbase Prime’s role as the primary partner for numerous spot crypto ETFs and managing $330 billion in assets as of March 31. The exchange reported an institutional trading volume of $256 billion in the first quarter of 2024, reflecting its important role in the digital asset market.
The partnership with the USMS marks another milestone in Coinbase’s ongoing efforts to improve the security and efficiency of digital asset management for institutional clients.