The US Marshals Service (USMS), a division of the Department of Justice, has selected Coinbase (NASDAQ: COIN) Prime to manage and dispose of its large-cap cryptocurrency assets. This decision follows a competitive bidding process initiated earlier this year.
The contract, valued at $32.5 million according to the official award notice, tasks Coinbase Prime with handling custody and advanced trading services for large-capitalization digital assets forfeited to law enforcement. This arrangement aims to streamline the management and disposal of cryptocurrencies while expanding the range of digital assets that can be handled under government forfeiture programs.
Structured as a single-award Indefinite Delivery/Indefinite Quantity (IDIQ) agreement, the contract has an initial ordering period of five years, with a possible six-month extension. This partnership aims to streamline custody, management, and disposal processes for cryptocurrency while expanding the range of digital assets that can be handled under government forfeiture programs.
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Interestingly, this partnership comes at a time when Coinbase is engaged in legal battles with other government agencies. The company is currently navigating challenges with the SEC over platform registration issues and has sued both the SEC and the Federal Deposit Insurance Corp. (FDIC) for allegedly attempting to disconnect the crypto industry from the banking sector and failing to provide regulatory clarity.
News of the partnership boosted Coinbase’s stock by 6% in late Monday trading. This uptick coincided with a rise in Bitcoin’s price, which increased from around $60,000 to more than $63,000 since Friday.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
