Coinbase Custody vs Hex Trust — Head-to-Head Custody Comparison

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

Verdict

Quick Verdict

Coinbase Custody scores 8.2 vs Hex Trust's 6.9. Coinbase Custody leads in 7 of 8 categories.

Coinbase Custody is better suited for ETF issuers, Hedge funds, Asset managers. Hex Trust is better suited for Asian institutions, Banks in APAC, Fintech companies.

8.2

Very GoodCustody Score

Coinbase Custody

6.9

FairCustody Score

Hex Trust

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Coinbase Custody	Hex Trust	Winner
Security	20%	9.0	8.0	Coinbase Custody
Insurance	15%	8.0	6.5	Coinbase Custody
Regulatory	15%	9.5	8.0	Coinbase Custody
Fee Transparency	10%	7.0	5.0	Coinbase Custody
Track Record	15%	8.5	6.5	Coinbase Custody
Withdrawal Flexibility	10%	7.5	7.0	Coinbase Custody
Reporting & Audit	10%	9.0	7.5	Coinbase Custody
Counterparty Diversification	5%	2.0	3.0	Hex Trust
Overall Score	100%	8.2	6.9	Coinbase Custody

Visual

Score Radar

Visual overlay of Coinbase Custody and Hex Trust across all categories.

Coinbase CustodyHex Trust

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..

Hex Trust uses MPC-based custody key management with Majority cold in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: No incidents.

Insurance (8.0 vs 6.5)

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.

Hex Trust offers Insurance coverage available via Not publicly disclosed. Institutional custody insurance.

Regulatory (9.5 vs 8.0)

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.

Hex Trust holds Hong Kong TCSP license, Singapore MAS license and is not a qualified custodian operating in Hong Kong / Singapore / APAC. Licensed in multiple Asian jurisdictions.

Fee Transparency (7.0 vs 5.0)

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.

Hex Trust charges Custom in annual custody fees with Custom per transaction. Asia-Pacific focused with multi-jurisdiction licensing.

Track Record (8.5 vs 6.5)

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..

Hex Trust was founded in 2019 and is headquartered in Hong Kong. AUM: Not publicly disclosed. Incident history: No incidents.

Withdrawal Flexibility (7.5 vs 7.0)

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

Hex Trust withdrawal fees: Network fees. Minimum account: Institutional only. Supported assets: Bitcoin, Ethereum, 400+ assets.

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.

Hex Trust: SOC compliance is SOC 2 Type 2. Not classified as a qualified custodian.

Counterparty Diversification (2.0 vs 3.0)

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

Hex Trust is a qualified custodian provider. Key management: Licensed institutional custody with MPC technology..

Fees

Fee Comparison

Side-by-side fee breakdown for Coinbase Custody and Hex Trust.

Fee Type	Coinbase Custody	Hex Trust
Setup Fee	$10,000 one-time	Custom
Annual Custody	0.50% AUM (50bps) — tiered for large balances	Custom
Transaction	Varies	Custom
Withdrawal	Network fees + processing fee	Network fees

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

Hex Trust: Asia-Pacific focused with multi-jurisdiction licensing.

Features

Feature Comparison

Checklist of features across both providers.

Feature	Coinbase Custody	Hex Trust
400+ asset support	✗	✓
Bank-grade infrastructure	✗	✓
Cold storage for 400+ assets	✓	✗
Custodian for major Bitcoin ETFs	✓	✗
Dedicated account management	✓	✗
Integration with Coinbase Prime for trading	✓	✗
MPC technology	✗	✓
Multi-jurisdiction APAC licensing	✗	✓
Regulatory reporting and compliance tools	✓	✗
Staking (governance participation from cold storage)	✓	✗
Staking and DeFi access	✗	✓
Tokenization services	✗	✓

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

Hex Trust is better if you…

✓Are a asian institutions
✓Are a banks in apac
✓Are a fintech companies
✓Are a fund managers
✓Want: Leading APAC digital asset custodian
✓Want: Multi-jurisdiction licensing
✓Want: SOC 2 Type 2 certified

FAQ

Frequently Asked Questions

Is Coinbase Custody or Hex Trust better for Bitcoin custody?

Coinbase Custody scores 8.2 vs 6.9 in our weighted Custody Score. Coinbase Custody leads in 7 of 8 scoring categories. However, the best choice depends on your specific needs: Coinbase Custody is best for ETF issuers and Hedge funds, while Hex Trust suits Asian institutions and Banks in APAC.

What is the difference between Coinbase Custody and Hex Trust?

Coinbase Custody is a qualified custodian provider, while Hex Trust is a qualified custodian provider. Coinbase Custody excels in Regulatory, whereas Hex Trust is strongest in Security.

How do Coinbase Custody and Hex Trust fees compare?

Coinbase Custody charges 0.50% AUM (50bps) — tiered for large balances annual custody fees with Varies transaction fees. Hex Trust charges Custom annual custody fees with Custom transaction fees.

Which is more secure, Coinbase Custody or Hex Trust?

Coinbase Custody scores 9.0/10 for security while Hex Trust scores 8.0/10. Coinbase Custody uses Proprietary cold storage key management, and Hex Trust uses MPC-based custody.