Coinbase says custodial arm has ‘extensively prepared’ for spot Bitcoin ETF
Dec. 30, 2023
By Mike Dalton
Coinbase Custody has made adjustments in preparation for its role in pending spot Bitcoin ETFs, Bloomberg reported on Dec. 29.
A Coinbase representative said:
“We have extensively prepared for ETF approval … Our systems have been designed and tested to handle added trading volume, increased liquidity and general increases in demand on our systems.”
Part of those changes involve executive reshuffling, according to Bloomberg. Aaron Schnarch, CEO of Coinbase Custody, reportedly stepped down. He has been replaced by Rick Schonberg, an employee of Coinbase since 2021 who has previously held roles in traditional finance including at Goldman Sachs.
Financial institutions are generally required to store cryptocurrency with a qualified custodian, such as Coinbase Custody, rather than with a retail exchange. Bloomberg noted that multiple ETF applicants including including BlackRock, Franklin Templeton, and Grayscale Investments plan to work with Coinbase Custody to manage Bitcoin holdings for their ETFs.
VanEck incidentally named Coinbase Custody as a possible additional custodian in its latest update, though it primarily will rely on Gemini for custody.
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