Coinbase

Qualified Custodian

Established Est. 2012

United States

21Rates Quality Score: 9.0/10

Coinbase, founded 2012, is the largest U.S. cryptocurrency platform with 100+ million users. Offers retail and institutional trading, custody (Coinbase Prime), staking, wallet services, and zero-fee trading via Coinbase One.

Coinbase Custody is the largest US-regulated institutional Bitcoin custodian, operated by Coinbase (NASDAQ: COIN). It holds 98% of assets in cold storage, carries over $320M in commercial crime insurance, and is licensed as a limited purpose trust company by the NYDFS. As a publicly traded company, Coinbase undergoes SEC reporting and annual SOC 2 Type II audits.

Custody Model

ModelHosted Custody

LicensesNYDFS BitLicense, registered MSB with FinCEN, state money transmitter licenses

RegulatoryBSA/AML, OFAC, NYDFS regulations, publicly traded (NASDAQ: COIN)

JurisdictionUnited States (NYDFS-regulated)

Fees & Minimums

Fee StructureCoinbase Prime Custody: 0.04-0.10% annual fee based on AUM. $1M minimum for institutional accounts.

Min Balance$1,000,000 for Prime Custody

WithdrawalsCustom institutional limits

Security

Cold Storage98% cold storage

Insurance$320M insurance policy, FDIC on USD balances

Proof of Reserves No

Asset SegregationYes

AuditsAnnual SOC audits, SEC reporting (public company)

Features

API Access Available

Mobile App Yes

Hardware Wallet Not supported

Institutional Available

Integrated Trading Yes

AssetsBTC, ETH, SOL, XRP, ADA, DOGE, 200+ digital assets

About Coinbase

Best for: US institutions requiring qualified custodian status, maximum insurance coverage, and the accountability that comes with a publicly traded, NYDFS-regulated custodian.

Coinbase Custody Trust Company, LLC is a New York-chartered limited purpose trust company and wholly owned subsidiary of Coinbase Global, Inc. (NASDAQ: COIN). Launched in 2018, it was purpose-built for institutional clients requiring qualified custodian status under US investment adviser regulations. Client digital assets are held in segregated cold storage accounts -- 98% offline -- using a combination of proprietary cold storage infrastructure and multi-party computation (MPC) technology. Coinbase Custody carries a commercial crime insurance policy exceeding $320M and additionally benefits from Coinbase's FDIC pass-through coverage on USD cash balances. As a publicly listed company, Coinbase publishes annual SOC 1 Type II and SOC 2 Type II audit reports, complies with SEC reporting requirements, and is subject to ongoing NYDFS supervisory oversight. The platform requires a $1M minimum balance for Prime Custody accounts and serves hedge funds, asset managers, and corporate treasury teams globally.

Frequently Asked Questions About Coinbase

Coinbase is a qualified custodian, meaning it is a regulated financial institution authorised to hold client assets. This is important for institutional investors who are legally required to use a qualified custodian under regulations such as the SEC Custody Rule.

Coinbase carries the following insurance coverage: $320M insurance policy, FDIC on USD balances. Always confirm specific coverage terms, limits, and exclusions directly with Coinbase before depositing assets.

Coinbase stores 98% cold storage of assets in cold storage (offline). Cold storage protects against remote hacking by keeping private keys disconnected from the internet.

Coinbase's fee structure: Coinbase Prime Custody: 0.04-0.10% annual fee based on AUM. $1M minimum for institutional accounts.. Custody fees are typically charged as an annual basis-point fee on assets under custody or a flat monthly fee.

The minimum balance requirement at Coinbase is $1,000,000 for Prime Custody. This may vary based on account type and service tier.

About this analysis

21Rates Editorial TeamBitcoin Financial Research Analysts

Our research team analyses Bitcoin custody providers using proprietary quality scoring, regulatory research, and user reviews. We independently verify custody terms and maintain up-to-date information to help you make informed decisions.

Last verified: August 2026