How is my cryptocurrency 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 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 is my cash insured?
Cash balances are held as a balance in your Coinbase account(s). For U.S. 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 individual). 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 our User Agreement.
Below is a list of the insured depository institutions at which Coinbase may deposit U.S. Dollar customer funds:
For Coinbase Inc.
JPMorgan Chase
Cross River Bank
Customers Bank
VyStar Credit Union (Retail customer funds only)
Pathward (previously known as MetaBank)
For Coinbase Custody Trust Company
Customers Bank
[as of October, 2024]
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.