At Coinbase, we are acutely aware of the numerous considerations that publicly traded and private companies have when it comes to the composition of their treasuries. These companies need a partner who understands their unique concerns and is able to share knowledge based on its own experience.
Since our founding in 2012, Coinbase has held bitcoin and other crypto assets on our balance sheet — and we plan to maintain an investment in crypto assets as we believe strongly in the long-term potential of the cryptoeconomy. Investing in crypto assets required us to develop new investment, accounting, and tax policies, as well as ensure we established a control environment for purposes of receiving unqualified audit opinions on our financial statements. Much like we have with Coinbase Custody, we’re happy for others to benefit from our experience.
We’ve used this experience to build a new resource to help answer the tough questions corporate leaders may be asking. In this detailed FAQ, we answer tax and accounting questions like: How do I book a digital asset purchase? How does this impact my reporting ledger and my balance sheet? And regulatory and compliance questions such as: What is the regulatory status of digital assets? Are there any risks associated with buying and storing digital assets from a regulatory perspective? Do I need any licenses? We’ve also included a set of talking points for investor relations.
We’re committed to creating a compliant digital currency exchange linked to the traditional financial system, a critical piece of infrastructure to help digital currency grow. Our investments in industry-leading technology and practices to secure data and assets have set a high bar for the industry.
Institutions across the board are building for a future that is protected from new risks; this includes building a diverse balance sheet that is adequately hedged from the traditional capital markets and monetary debasement. On the corporate side, use cases for digital assets are expanding rapidly from traditional portfolio management as an investment asset within a diversified portfolio — to accounts receivable/accounts payable, employee payroll, and commerce integration, for example.
Coinbase has efficiently executed nine and ten figure trades for some of the largest institutions in the world. Clients have selected us for our track record in security, sophisticated execution platform, 24/7/365 white glove service, and focus on regulatory compliance. Working on an agency-only basis aligns us with the interests of our clients as we seek to find the best prices available in the market. In addition, Coinbase Custody’s offline cold storage provides companies with maximum security, evident from the fact that customers have not lost funds due to a security breach of the platform.
A history of compliance and security
- One of the first crypto custodians to be issued both the SOC 1 Type 2 and SOC 2 Type 2 reports.
- One of the first trading platforms to receive the NYDFS BitLicense.
- Secured an industry-leading insurance policy in 2013 to protect both online and offline assets across all of our products — which we believe to be the largest hot wallet crime program in the insurance market.