How cryptocurrency is insured
Coinbase, Inc. (“Coinbase”) and other operating subsidiaries are covered by Coinbase Global, Inc.’s crime insurance that protects a portion of digital assets held across our storage systems against losses from theft, including cybersecurity breaches. However, our policy does not cover any losses resulting from unauthorized access to your personal Coinbase account(s) due to a breach or loss of your credentials. It is your responsibility to use a strong password and maintain control of all login credentials you use to access Coinbase.
Cryptocurrency is not legal tender and is not backed by the government. Coinbase is not an FDIC-insured bank and cryptocurrency is not insured or guaranteed by or subject to the protections of the Federal Deposit Insurance Corporation (“FDIC”), National. Credit Union Share Insurance Fund (“NCUSIF”), or Securities Investor Protection Corporation (“SIPC”), and may lose value.
In Canada, cryptocurrency is not legal tender and is not backed by the Canadian government. Cryptocurrency is not insured, guaranteed, or protected by the Canada Deposit Insurance Corporation (CDIC) or the Canadian Investor Protection Fund (CIPF), and may lose value. Coinbase Canada, Inc. is not a member of CDIC.
In case of a security event covered by our crime insurance policies, we will endeavor to make you whole. However, total losses may exceed insurance recoveries so your funds may still be lost.
How cash is insured
Cash balances are held as a balance in your Coinbase account(s). For U.S. customers and Coinbase Canada Prime customers, Coinbase combines your US Dollar balance with the balances of other customers (plus some cash we contribute for operational reasons) and holds those funds in permissible investments under state money transmission laws, which may include:
Custodial accounts at U.S. financial institutions;
Liquid U.S. Treasuries; or
USD denominated money market funds.
Funds could be held in financial institutions or in permissible investments under money transmission laws, so customers should not assume that funds are being held in one manner over the other. For non-U.S. customers, funds are held as cash in dedicated custodial accounts separate from Coinbase funds. For all customers, Coinbase will not use customer funds for its operating expenses or any other corporate purposes.
To the extent U.S. customer U.S. Dollar funds are held as cash, they are maintained in pooled custodial accounts at one or more FDIC-insured banks or NCUSIF-insured credit unions. Our custodial accounts have been established in a manner to allow Coinbase to make a claim against pass-through FDIC or NCUSIF insurance for each customer up to the per-depositor coverage limit then in place (currently $250,000 per depositor). Pass-through insurance may be available to protect funds held on behalf of a Coinbase customer against the risk of loss should any financial institution(s) where we maintain custodial accounts fail. Pass-through insurance coverage is contingent upon Coinbase maintaining accurate records and on determinations of the relevant federal regulator as receiver at the time of a receivership of a bank or credit union holding a custodial account.
Please note that FDIC and NCUA insurance coverage discussed in this article are only applicable to U.S.-based customers of Coinbase, Inc., and this article does not vary or replace any terms from our User Agreement. To understand the specific commitments and limitations of insurance on cash held at Coinbase, please reference the User Agreement applicable to your account.
Canadian retail customer Canadian Dollar funds are held as cash in pooled custodial accounts at one or more bank(s) authorized to carry out business in Canada. Where applicable, these custodial accounts are designated as professional trustee accounts (“PTAs”) and Coinbase Canada maintains records of each customer’s interest therein in a manner designed to maintain the PTA designation in accordance with the CDIC Act and make available pass-through deposit insurance, up to the per-depositor coverage limit then in place (currently C$100,000 per depositor per insured depository institution). Availability of pass-through deposit insurance with respect to the portion of customer cash held in a PTA is contingent upon Coinbase Canada having correct information about a customer, maintaining accurate records, and on a determination by the CDIC that all legal and regulatory conditions have been satisfied. Coinbase Canada does not guarantee that pass-through CDIC deposit insurance will apply to a customer’s cash.
Below is a list of the insured depository institutions at which Coinbase may deposit U.S. and CAD Dollar Prime customer funds:
For Coinbase Inc. or Coinbase Canada Prime customers
JPMorgan Chase
Cross River Bank
Customers Bank
VyStar Credit Union (Retail and Business customer funds only)
Pathward (previously known as MetaBank)
For Coinbase Custody Trust Company
Customers Bank
For Coinbase Canada
Peoples Trust Company (Retail customer funds only)
[as of May, 2025]
Find out more about FDIC deposit insurance in the FDIC’s fact sheet, here. Find out more about the National Credit Union Share Insurance Fund here.
Find out more about CDIC deposit insurance on CDIC’s website, here.