U.S. Marshals Service Awards Coinbase Prime Contract for Crypto Asset Management
The U.S. Marshals Service (USMS), part of the U.S. Department of Justice, has awarded a significant contract to Coinbase Prime for the management and disposal of its large-cap cryptocurrency assets. This move follows a competitive bidding process initiated earlier this year and aims to enhance the handling of digital assets within federal operations.
The contract, issued on behalf of the Asset Forfeiture Division (AFD), targets the need for efficient management and disposal of substantial quantities of popular cryptocurrencies, classified as “Class 1” digital assets. Under this agreement, Coinbase Prime will implement storage and liquidation techniques that comply with both Department of Justice and USMS policies.
The primary goal of the contract is to streamline the custody, management, and disposal processes for cryptocurrencies, thereby expanding the range of digital assets managed under the government’s forfeiture programs. Structured as a single-award Indefinite Delivery/Indefinite Quantity (IDIQ) agreement, the contract has an initial ordering period of five years, with the possibility of a six-month extension.
The USMS has highlighted the importance of professional, lawful, and policy-consistent handling of these digital assets. The selection process emphasized finding a partner capable of delivering the “best value” to the government, using a trade-off evaluation method.
As of March 31, Coinbase’s services safeguarded $330 billion in assets and recorded $256 billion in institutional trading volume in the first quarter of 2024. This contract represents a notable step in integrating cryptocurrency management into federal law enforcement operations, reflecting the growing acceptance of digital assets in government processes and the need for specialized services to handle them securely and efficiently.
The collaboration between the USMS and Coinbase also extends the platform’s existing relationships with law enforcement agencies, which date back to 2014. Coinbase currently works with major U.S. federal, state, and local law enforcement agencies, as well as international bodies across all continents, reinforcing its role as a partner in the handling of digital assets.
