Coinbase Custody
Qualified CustodianCoinbase Custody is the institutional custody arm of Coinbase, the largest US cryptocurrency exchange. It provides cold storage custody for institutional investors and serves as the custodian for several major Bitcoin ETFs including BlackRock's iShares Bitcoin Trust.
Quick Verdict
With a Custody Score of 8.2/10, Coinbase Custody is ranked #3 of 11 among qualified custodian providers. Its strongest category is Regulatory and its weakest is Counterparty Diversification.
Analysis
Score Breakdown
The Custody Score is a weighted average across 8 criteria, each rated 1-10.
| Criterion | Score | Weight | Weighted |
|---|---|---|---|
| Security | 9 | 20% | 1.80 |
| Insurance | 8 | 15% | 1.20 |
| Regulatory | 9.5 | 15% | 1.43 |
| Fee Transparency | 7 | 10% | 0.70 |
| Track Record | 8.5 | 15% | 1.27 |
| Withdrawal Flexibility | 7.5 | 10% | 0.75 |
| Reporting & Audit | 9 | 10% | 0.90 |
| Counterparty Diversification | 2 | 5% | 0.10 |
| Total | 100% | 8.2 |
Key Features
- ✓Cold storage for 400+ assets
- ✓Staking (governance participation from cold storage)
- ✓Dedicated account management
- ✓Regulatory reporting and compliance tools
- ✓Integration with Coinbase Prime for trading
- ✓Custodian for major Bitcoin ETFs
Fee Breakdown
| Setup Fee | $10,000 one-time |
| Annual Custody Fee | 0.50% AUM (50bps) — tiered for large balances |
| Transaction Fee | Varies |
| Withdrawal Fee | Network fees + processing fee |
| Notes | Pricing negotiable for large institutional clients. ETF custodian arrangements have separate terms. |
Security Details
Key Management
Proprietary cold storage
Cold Storage
98%+ cold storage
SOC Compliance
SOC 1 Type 2, SOC 2 Type 2
Penetration Testing
Yes
Incident History: No custody-specific breaches. Coinbase exchange has had minor incidents.
Insurance Coverage
Coverage
Significant coverage (exact amount not publicly disclosed)
Carrier
Multiple carriers
Details
Crime insurance covering theft from breach of physical or cyber security. Coinbase publicly listed — financial transparency via SEC filings.
Regulatory Status
Licenses
- New York BitLicense
- NY Trust Charter (Coinbase Custody Trust Company)
Coinbase Custody Trust Company, LLC is a fiduciary under New York State Banking Law. Publicly traded (COIN) providing financial transparency.
Pros & Cons
Pros
- Custodian for BlackRock, Fidelity, and other major ETFs — ultimate institutional validation
- Publicly traded company — financial transparency via SEC filings
- SOC 1 & SOC 2 Type 2 compliant
- Deep regulatory track record
- Integrated trading via Coinbase Prime
Cons
- Single custodian — all eggs in one basket
- $500K minimum and $10K setup fee
- Exchange and custody are same entity — correlated risk
- Custody fees at 50bps are higher than some competitors
How Coinbase Custody Compares
Top qualified custodian providers ranked by Custody Score.
| Provider | Custody Score | Compare |
|---|---|---|
| Fidelity Digital Assets | 8.4 | Compare → |
| BitGo | 8.2 | Compare → |
| Anchorage Digital | 7.9 | Compare → |
| Gemini Custody | 7.7 | Compare → |
| Zodia Custody | 7.2 | Compare → |