Coinbase Custody vs Bakkt — Head-to-Head Custody Comparison

An independent, data-driven comparison of Coinbase Custody and Bakkt across security, insurance, fees, regulatory compliance, and more.

Verdict

Quick Verdict

Coinbase Custody scores 8.2 vs Bakkt's 7.0. Coinbase Custody leads in 6 of 8 categories.

Coinbase Custody is better suited for ETF issuers, Hedge funds, Asset managers. Bakkt is better suited for Institutions, Financial services companies, Fintechs.

8.2

Very GoodCustody Score

Coinbase Custody

GoodCustody Score

Bakkt

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Coinbase Custody	Bakkt	Winner
Security	20%	9.0	8.0	Coinbase Custody
Insurance	15%	8.0	6.0	Coinbase Custody
Regulatory	15%	9.5	8.5	Coinbase Custody
Fee Transparency	10%	7.0	7.0	Tie
Track Record	15%	8.5	7.0	Coinbase Custody
Withdrawal Flexibility	10%	7.5	6.5	Coinbase Custody
Reporting & Audit	10%	9.0	7.5	Coinbase Custody
Counterparty Diversification	5%	2.0	2.0	Tie
Overall Score	100%	8.2	7	Coinbase Custody

Visual

Score Radar

Visual overlay of Coinbase Custody and Bakkt across all categories.

Coinbase CustodyBakkt

Deep Dive

Category-by-Category Analysis

A deeper look at how each provider performs in every scoring criterion.

Security (9.0 vs 8.0)

Coinbase Custody uses Proprietary cold storage key management with 98%+ cold storage in cold storage and regular penetration testing. Compliance: SOC 1 Type 2, SOC 2 Type 2. Incident history: No custody-specific breaches. Coinbase exchange has had minor incidents..

Bakkt uses Cold storage with multi-zone physical security key management with Majority cold in cold storage and regular penetration testing. Compliance: SOC 2 (details not fully public). Incident history: No custody incidents. Company has faced financial challenges (stock price decline)..

Insurance (8.0 vs 6.0)

Coinbase Custody offers Significant coverage (exact amount not publicly disclosed) via Multiple carriers. Crime insurance covering theft from breach of physical or cyber security. Coinbase publicly listed — financial transparency via SEC filings.

Bakkt offers $125M reported (as of 2019, may have changed) via Not publicly confirmed recently. Insurance details less transparent than competitors. Originally claimed $125M coverage.

Regulatory (9.5 vs 8.5)

Coinbase Custody holds New York BitLicense, NY Trust Charter (Coinbase Custody Trust Company) and is a qualified custodian operating in United States. Coinbase Custody Trust Company, LLC is a fiduciary under New York State Banking Law. Publicly traded (COIN) providing financial transparency.

Bakkt holds NYDFS Qualified Custodian (Bakkt Trust Company LLC) and is a qualified custodian operating in United States. Bakkt Trust Company LLC is a New York State-regulated qualified custodian. Parent ICE/NYSE provides institutional gravitas.

Fee Transparency (7.0 vs 7.0)

Coinbase Custody charges 0.50% AUM (50bps) — tiered for large balances in annual custody fees with Varies per transaction. Pricing negotiable for large institutional clients. ETF custodian arrangements have separate terms.

Bakkt charges 0.10% AUM/month for BTC (1.2% annually). 0.20% AUM/month for ETH. in annual custody fees with Varies per transaction. $100/month minimum fee. Higher annual rate than most competitors.

Track Record (8.5 vs 7.0)

Coinbase Custody was founded in 2018 and is headquartered in San Francisco, CA (Coinbase Global). AUM: $300B+ (Coinbase platform total). Incident history: No custody-specific breaches. Coinbase exchange has had minor incidents..

Bakkt was founded in 2018 and is headquartered in Alpharetta, GA. AUM: Not publicly disclosed. Incident history: No custody incidents. Company has faced financial challenges (stock price decline)..

Withdrawal Flexibility (7.5 vs 6.5)

Coinbase Custody withdrawal fees: Network fees + processing fee. Minimum account: $500,000. Supported assets: Bitcoin, Ethereum, 400+ assets.

Bakkt withdrawal fees: Network fees. Minimum account: Contact for pricing. Supported assets: Bitcoin, Ethereum.

Reporting & Audit (9.0 vs 7.5)

Coinbase Custody: SOC compliance is SOC 1 Type 2, SOC 2 Type 2. As a qualified custodian, it meets SEC reporting requirements.

Bakkt: SOC compliance is SOC 2 (details not fully public). As a qualified custodian, it meets SEC reporting requirements.

Counterparty Diversification (2.0 vs 2.0)

Coinbase Custody is a qualified custodian provider. Key management: Proprietary cold storage with multi-layer security. Air-gapped signing infrastructure..

Bakkt is a qualified custodian provider. Key management: Warehouse-grade cold storage with multi-zone physical security..

Fees

Fee Comparison

Side-by-side fee breakdown for Coinbase Custody and Bakkt.

Fee Type	Coinbase Custody	Bakkt
Setup Fee	$10,000 one-time	Contact for pricing
Annual Custody	0.50% AUM (50bps) — tiered for large balances	0.10% AUM/month for BTC (1.2% annually). 0.20% AUM/month for ETH.
Transaction	Varies	Varies
Withdrawal	Network fees + processing fee	Network fees

Coinbase Custody: Pricing negotiable for large institutional clients. ETF custodian arrangements have separate terms.

Bakkt: $100/month minimum fee. Higher annual rate than most competitors.

Features

Feature Comparison

Checklist of features across both providers.

Feature	Coinbase Custody	Bakkt
24/7 response support	✗	✓
Cold storage for 400+ assets	✓	✗
Consumer wallet solutions	✗	✓
Crypto rewards and loyalty programs	✗	✓
Custodian for major Bitcoin ETFs	✓	✗
Dedicated account management	✓	✗
ICE/NYSE pedigree	✗	✓
Integration with Coinbase Prime for trading	✓	✗
Publicly traded (BKKT)	✗	✓
Regulatory reporting and compliance tools	✓	✗
Staking (governance participation from cold storage)	✓	✗
Warehouse-grade cold storage	✗	✓

Recommendation

Who Should Choose Which?

Coinbase Custody is better if you…

✓Are a etf issuers
✓Are a hedge funds
✓Are a asset managers
✓Are a institutions
✓Want: Custodian for BlackRock, Fidelity, and other major ETFs — ultimate institutional validation
✓Want: Publicly traded company — financial transparency via SEC filings
✓Want: SOC 1 & SOC 2 Type 2 compliant

Bakkt is better if you…

✓Are a institutions
✓Are a financial services companies
✓Are a fintechs
✓Are a merchants
✓Want: Owned by ICE (NYSE parent) — unmatched traditional finance pedigree
✓Want: NYDFS qualified custodian
✓Want: Publicly traded — financial transparency

FAQ

Frequently Asked Questions

Is Coinbase Custody or Bakkt better for Bitcoin custody?

Coinbase Custody scores 8.2 vs 7.0 in our weighted Custody Score. Coinbase Custody leads in 6 of 8 scoring categories. However, the best choice depends on your specific needs: Coinbase Custody is best for ETF issuers and Hedge funds, while Bakkt suits Institutions and Financial services companies.

What is the difference between Coinbase Custody and Bakkt?

Coinbase Custody is a qualified custodian provider, while Bakkt is a qualified custodian provider. Coinbase Custody excels in Regulatory, whereas Bakkt is strongest in Regulatory.

How do Coinbase Custody and Bakkt fees compare?

Coinbase Custody charges 0.50% AUM (50bps) — tiered for large balances annual custody fees with Varies transaction fees. Bakkt charges 0.10% AUM/month for BTC (1.2% annually). 0.20% AUM/month for ETH. annual custody fees with Varies transaction fees.

Which is more secure, Coinbase Custody or Bakkt?

Coinbase Custody scores 9.0/10 for security while Bakkt scores 8.0/10. Coinbase Custody uses Proprietary cold storage key management, and Bakkt uses Cold storage with multi-zone physical security.