Coinbase: Is Coinbase FDIC Insured?

Key Takeaway:

• Coinbase provides insurance coverage for digital assets held on their platform through crime insurance. This helps protect against unauthorized access, theft, and hacking.
• Although Coinbase provides insurance for digital assets, it’s important to note that personal accounts may have limitations in coverage. Users must take precautions such as using strong passwords and protecting their credentials to minimize risks.
• Coinbase’s insurance coverage does not have government backing or FDIC/SIPC protections. This means that in the event of a market crash or economic downturn, there is a possibility of a total loss despite having insurance coverage.
• Cash balances held in Coinbase or Coinbase Pro accounts are insured through various methods, including custodial accounts at U.S. banks and investments in liquid U.S. Treasuries or money market funds. However, non-U.S. customers may have different arrangements for cash holdings.
• FDIC insurance coverage is available for U.S. customer funds held in Coinbase. Pooled custodial accounts and pass-through insurance are used to provide coverage. It’s important to be aware of the coverage limit and contingency factors that may affect the insurance provided.
• Coinbase utilizes insured depository institutions to safeguard customer funds. It is crucial for users to understand which institutions are being used to ensure the safety of their funds.

Introduction

Coinbase, a popular cryptocurrency exchange platform, is often queried about its FDIC insurance coverage. As a reputable exchange, users are often concerned about the safety of their funds. While Coinbase does not explicitly provide FDIC insurance, it does offer certain protections for its customers’ digital currency holdings.

By segregating customer funds from company operational funds, Coinbase ensures that user assets are safeguarded in the event of financial difficulties or bankruptcy. Additionally, Coinbase holds digital currency balances in cold storage, further enhancing security measures.

However, it is crucial to note that FDIC insurance, which covers traditional bank deposits up to a certain limit, does not extend to digital currencies. The nature of cryptocurrencies makes them inherently volatile, with no centralized governing authority or deposit insurance program.

It is essential for cryptocurrency enthusiasts and Coinbase users to fully understand the risks associated with investing in digital assets. While Coinbase implements security measures to protect user funds, the value of digital currencies can fluctuate significantly, and there is always a risk of losing the entirety of the investment.

To mitigate this risk, users should consider diversifying their investment portfolio and conducting thorough research before engaging in cryptocurrency transactions. By staying informed and taking necessary precautions, one can navigate the cryptocurrency landscape with confidence and prudence.

Is Coinbase FDIC Insured?

When it comes to ensuring the safety and security of our digital assets, one of the key factors to consider is whether or not the platform we use is FDIC insured. So, let’s discuss the pertinent question – is Coinbase FDIC insured?

In this section, we will provide an overview of Coinbase’s insurance policies, shedding light on the coverage they offer for our funds. By delving into the specifics, we can gain a better understanding of the level of financial protection provided by Coinbase, giving us peace of mind as we navigate the realm of digital investments.

Overview of Coinbase’s Insurance Policies

To ensure the safety of its users’ funds, Coinbase has implemented robust insurance policies. These policies provide coverage for both cryptocurrencies and cash balances held on the platform.

For digital assets such as cryptocurrencies, Coinbase offers crime insurance. This coverage protects against unauthorized access, hackers, and breaches in their offline storage systems. While this insurance provides an added layer of protection, it is important to note that there are limitations to the coverage offered for personal accounts.

To safeguard against potential risks, Coinbase emphasizes the importance of strong password and credential protection. Users are strongly encouraged to use unique and complex passwords, enable two-factor authentication (2FA), and regularly update their login credentials.

It is also crucial to recognize that unlike traditional banking institutions, cryptocurrency holdings are not backed by any government entities or FDIC/SIPC protections. Therefore, there is always a possibility of total loss despite having insurance coverage.

Moving on to cash balances held on Coinbase or Coinbase Pro accounts, these funds enjoy multiple layers of protection. For U.S. customers, cash is either kept in custodial accounts at U.S. banks or invested in liquid U.S. Treasuries or money market funds.

Non-U.S. customers have their cash held in dedicated custodial accounts. These measures ensure segregation of customer funds from Coinbase’s corporate balance sheet.

U.S. customer funds held in custodial accounts benefit from FDIC insurance coverage through pooled custodial accounts and pass-through insurance. However, it’s important to note that this coverage has certain limits and contingency factors that may come into play depending on the particular situation.

Coinbase provides a list of insured depository institutions they utilize for safeguarding customer funds, ensuring transparency regarding where the funds are stored.

Protect your cryptocurrency like you protect your secrets, or you’ll end up with a wallet as empty as your social life.

How is my cryptocurrency insured?

When it comes to the safety of our cryptocurrency, one of the burning questions is: how is my digital wealth insured? Let’s dig into this important topic and uncover the different aspects of cryptocurrency insurance. We’ll start by exploring the concept of crime insurance for digital assets, ensuring your holdings are protected from potential threats. We’ll then delve into the limitations of coverage for personal accounts, shedding light on important considerations. Additionally, we’ll discuss the significance of strong password and credential protection, as well as the absence of government backing and FDIC/SIPC protections. Lastly, we’ll touch upon the possibility of a total loss despite insurance coverage, highlighting potential risks that crypto holders should be aware of.

Crime insurance for digital assets

Coinbase offers insurance coverage for digital assets to protect against criminal activities. This provides an added layer of security for your cryptocurrency holdings. In case of theft or unauthorized access, this insurance policy ensures that you are reimbursed for any losses incurred.

To safeguard your digital assets, Coinbase has implemented various security measures such as cold storage and multi-signature technology. These measures significantly reduce the risk of cyber attacks and potential losses.

It is essential to note that while crime insurance provides coverage for digital asset theft and unauthorized access, there are limitations to the coverage provided for personal accounts. Therefore, it is crucial to implement strong password protection measures and safeguard your credentials to maximize the benefits of this insurance.

Furthermore, it’s important to be aware that digital assets are not government-backed and do not receive FDIC/SIPC protections. This means that despite having insurance coverage, there is still a possibility of experiencing total loss in certain situations.

Personal accounts may have limitations, but hey, at least you can still laugh about it when your crypto gets stolen.

Limitations of coverage for personal accounts

Personal account coverage limitations refer to the restrictions in insurance provided for individual cryptocurrency accounts. These limits are applicable to safeguarding personal assets and may vary based on factors such as account value, type of digital assets held, and specific insurance policies in place.

To ensure comprehensive coverage, users should be aware that personal account insurance has certain constraints. For instance, there might be limitations on the total insured amount, potential exclusions depending on the type or value of digital assets, and requirements regarding the storage and security measures adopted by individuals.

One important consideration is the limited coverage for personal accounts despite the presence of insurance. Individuals must exercise caution and take necessary steps to protect their credentials and passwords effectively. Additionally, it is crucial to acknowledge that government backing or FDIC/SIPC protections may not extend universally to personal cryptocurrency accounts.

Despite utilizing insurance safeguards, there remains a possibility of experiencing a total loss in certain circumstances. It is essential to recognize that unexpected events or breaches beyond the control of Coinbase could result in a complete loss of funds despite coverage being in place.

Protect your password like your life depends on it, because in the world of cryptocurrency, it just might.

Importance of strong password and credential protection

In the digital world, the security and protection of your passwords and credentials are crucial. Safeguarding them effectively is of utmost importance. Strong password and credential protection ensure that unauthorized access to your accounts is prevented. This not only safeguards your personal information but also reduces the risk of fraudulent activities.

When it comes to cryptocurrency, the need for strong password and credential protection becomes even more significant. Cryptocurrency transactions involve valuable digital assets, making them prime targets for hackers. By establishing strong and unique passwords, using two-factor authentication, and regularly changing your credentials, you can significantly enhance the security of your cryptocurrency accounts.

It is important to note that despite taking all necessary precautions, there is a possibility of total loss despite insurance coverage. Therefore, it is crucial to remain vigilant and proactive in maintaining secure passwords and credentials to protect yourself from potential risks or losses.

Story: One such incident highlights the significance of strong password and credential protection. A user had saved their passwords on an unsecured device without any encryption. Unfortunately, their device was stolen by a cybercriminal who accessed their cryptocurrency account using these unprotected passwords. As a result, the user suffered a substantial financial loss. This story serves as a stark reminder of the importance of strong password and credential protection in today’s technologically advanced world.

Sorry to burst your bubble, but when it comes to government backing and FDIC/SIPC protections, cryptocurrency is a little bit like a rogue agent without a safety net.

Lack of government backing and FDIC/SIPC protections

Cryptocurrency investors should be aware of the absence of government support and protections from the FDIC/SIPC. Without these safeguards, there is no assurance that their funds will be reimbursed in the event of loss or theft. While Coinbase provides insurance coverage for digital assets, it is important to understand the limitations and possibilities of a total loss.

To mitigate risk, users should prioritize strong password protection and secure credentials. This can significantly reduce the chances of unauthorized access to their accounts. Additionally, it is crucial to recognize that insurance coverage does not equate to zero risk. Even with insurance in place, there remains a possibility of total loss.

When it comes to cash balances, Coinbase takes measures to ensure safety. For U.S. customers, cash held in custodial accounts at U.S. banks are invested in liquid U.S. Treasuries or money market funds. Non-U.S customers’ cash is held separately in dedicated custodial accounts. However, it is worth noting that FDIC insurance coverage applies only to U.S customer funds.

To enhance security further, individuals can consider spreading their funds across multiple platforms or wallets instead of relying solely on one exchange like Coinbase. This diversification reduces the risk of losing all funds at once if any particular platform faces issues.

Investing in cryptocurrency is like buying insurance for your car only to find out it doesn’t cover pothole damage.

Possibility of total loss despite insurance coverage

Despite having insurance coverage, there is still a potential risk for users to face a complete loss of their assets. This risk exists despite the presence of insurance policies. It is important to understand that insurance coverage does not guarantee complete protection against losses.

It is essential to be aware of the limitations and conditions associated with the insurance coverage provided by Coinbase. While they offer crime insurance for digital assets, it is crucial for users to take necessary precautions in securing their passwords and credentials. Additionally, it is significant to note that cryptocurrencies do not have the same government backing or FDIC/SIPC protections as traditional financial institutions.

Furthermore, even with insurance coverage, there remains the possibility of experiencing a total loss. This can occur due to various factors such as market fluctuations or unforeseen events that may not be covered under the insurance policies.

Therefore, users should exercise caution and make informed decisions when using Coinbase or any other cryptocurrency platform. It is important to thoroughly understand the risks associated with investing in cryptocurrencies and ensure that adequate security measures are in place.

Your cash is about as safe as a mattress stuffed with dollar bills – or maybe even less.

How is my cash insured?

Alright, let’s dive into how Coinbase ensures the safety of your cash. When it comes to your cash balances in Coinbase or Coinbase Pro accounts, they have specific protocols in place to provide protection. For U.S. customers, there are measures in place for holding cash balances, while non-U.S. customers have their own procedures.

Now, let’s talk about FDIC insurance coverage for U.S. customer funds, which adds an extra layer of security. To shed more light on this, Coinbase works with insured depository institutions, and we have the list of these institutions that Coinbase collaborates with.

So, let’s explore how Coinbase goes above and beyond to keep your cash safe.

Cash balances in Coinbase or Coinbase Pro accounts

• Cash balances in Coinbase or Coinbase Pro accounts are protected by insurance policies.
• Coinbase holds cash balances for US customers in custodial accounts at US banks.
• For non-US customers, cash is held in dedicated custodial accounts.
• US customer funds are covered by FDIC insurance up to a certain limit.
• Pooled custodial accounts and pass-through insurance ensure coverage for all eligible US customers.
• Coinbase provides a list of insured depository institutions used to safeguard customer funds.

It is important to note that despite the insurance coverage, there may still be limitations and potential risks associated with cash balances. Customers should take precautions such as maintaining strong passwords and protecting their credentials to further secure their funds.
Stashing your cash with Coinbase in the land of the free? Here’s how they’re keeping it safe.

Holding of cash balances for U.S. customers

The way in which cash balances are held for customers in the United States on Coinbase is by using custodial accounts at U.S. banks and investments in liquid U.S. Treasuries or money market funds. These measures ensure the safety and security of funds for U.S. customers. These custodial accounts are specifically dedicated to holding cash, providing added protection for customer funds. Additionally, Coinbase utilizes FDIC insurance coverage for U.S. customer funds, further safeguarding their cash balances. It is important to note that while these measures offer protection, there are limitations to coverage for personal accounts. Customers should also prioritize strong password and credential protection to minimize any potential risks. In the past, there have been instances where cryptocurrency exchanges experienced breaches or hacking incidents resulting in the loss of customer funds. However, Coinbase’s commitment to utilizing insured custodial accounts and FDIC insurance demonstrates its efforts to mitigate such risks and provide a secure platform for its customers’ cash balances. Putting your money in custodial accounts at U.S. banks is like hiring a bouncer for your cash, ensuring it stays protected and doesn’t end up on a wild spending spree without your permission.

Custodial accounts at U.S. banks

Custodial services for digital assets are offered by Coinbase through partnerships with various U.S. banks. These custodial accounts at U.S. banks provide a secure storage solution for cryptocurrencies, ensuring the protection of customer funds. By leveraging these banking relationships, Coinbase is able to offer enhanced security measures and peace of mind to its customers.

When it comes to custodial accounts at U.S. banks, Coinbase takes additional precautions to safeguard customer funds. These accounts are dedicated specifically for holding cash balances on behalf of customers, ensuring that these funds are not commingled with Coinbase’s own operational funds. This segregation of funds adds an extra layer of protection and transparency.

Furthermore, these custodial accounts at U.S. banks also benefit from FDIC insurance coverage. In the event that a partner bank becomes insolvent and is unable to return customer funds, the FDIC provides insurance coverage up to $250,000 per depositor, per insured bank. This insurance coverage helps mitigate the risk associated with holding cash balances in these custodial accounts.

Coinbase keeps your cash safe by investing in liquid U.S. Treasuries or money market funds – because even crypto needs a reliable rainy day fund.

Investment in liquid U.S. Treasuries or money market funds

Investing in liquid U.S. Treasuries or money market funds provides a secure option to safeguard your cash balances held by Coinbase. These investments are highly liquid and backed by the U.S. government, ensuring a low level of risk for your funds.

By investing in liquid U.S. Treasuries or money market funds, Coinbase can provide additional safety and stability to its customers’ cash balances. These investments offer a reliable means of preserving the value of your funds while still allowing for easy access when needed.

It is important to note that investing in these instruments does not guarantee full protection against all possible risks. However, it significantly reduces the likelihood of loss due to market volatility or other unforeseen circumstances.

To ensure the safety of your assets, you may consider diversifying your investment portfolio and exploring different avenues for protecting your funds. This could include seeking professional advice or considering alternative investment options that align with your risk tolerance.

Don’t miss out on the opportunity to protect and grow your wealth with Coinbase’s investment in liquid U.S. Treasuries or money market funds. Take action now to secure your financial future and gain peace of mind knowing that your funds are safeguarded against potential risks.

Non-U.S. customers, we’ve got your cash covered, no need to panic about potential losses!

Holding of cash balances for non-U.S. customers

• Non-U.S. customers’ cash is held in dedicated custodial accounts, ensuring their funds are separate from Coinbase’s operational accounts.
• These dedicated custodial accounts provide a secure storage solution for cash balances, protecting them from any potential risks or vulnerabilities.
• Coinbase takes extensive measures to safeguard non-U.S. customers’ cash, minimizing the possibility of unauthorized access or theft.
• For additional protection, Coinbase does not commingle its own funds with those of non-U.S. customers, prioritizing the safety and integrity of customer assets.
• Coinbase’s commitment to strict security protocols guarantees that non-U.S. customers can confidently hold cash balances within their accounts.

It is important to note that holding cash balances for non-U.S. customers at Coinbase ensures the utmost security and protection for their funds. This approach emphasizes the company’s dedication to maintaining a safe environment for customers’ financial assets.

Pro Tip: Be sure to regularly monitor your account activity and take advantage of Coinbase’s additional security features, such as two-factor authentication, to further enhance the safety of your funds.

Keeping your cash in dedicated custodial accounts is like tucking it away in a heavily guarded underground vault, ensuring maximum protection and minimal stress.

Cash held in dedicated custodial accounts

In these dedicated custodial accounts, Coinbase safeguards the cash balances of its customers. The company follows strict protocols and utilizes the highest security measures to ensure the safety of these funds. This includes advanced encryption techniques, multi-factor authentication, and constant monitoring for any suspicious activity.

Here is a breakdown of the columns that illustrate the features of cash held in dedicated custodial accounts:

Features	Description
Secure Storage	Cash funds are stored in dedicated custodial accounts
Segregation	Customer cash balances are segregated from other assets
Protection Measures	Advanced security measures such as encryption and multi-factor authentication
Monitoring	Constant monitoring to detect and prevent any suspicious activity

It is worth noting that while cash held in dedicated custodial accounts offers enhanced security, it is still important for customers to take steps to protect their personal login credentials. Strong passwords should be utilized, along with regularly updating them and using unique passwords for different online platforms.

Furthermore, it is crucial to understand that while Coinbase takes extensive measures to safeguard customer funds, these accounts do not have government backing or FDIC/SIPC protections. Therefore, there is always a possibility of a total loss despite insurance coverage.

To ensure the utmost security of funds held in dedicated custodial accounts, Coinbase suggests regularly reviewing account activity, enabling two-factor authentication, and promptly reporting any suspicious or unauthorized transactions. Additionally, users should stay alert to phishing attempts or suspicious emails that may attempt to gather personal information.

By following these suggestions and remaining vigilant regarding account security, customers can enhance the protection of their cash held in dedicated custodial accounts on Coinbase.

Is your cash in Coinbase really insured or will it mysteriously disappear like your ex’s last text?

FDIC insurance coverage for U.S. customer funds

FDIC coverage for funds of U.S. customers is accessible on Coinbase. The funds are insured via pooled custodial accounts at partner banks used by Coinbase. The coverage limit and contingency factors influence the extent of insurance protection. In case of any unfortunate event, such as a bank failure, FDIC insurance provides coverage for U.S. customer funds held in Coinbase’s pooled custodial accounts. This ensures that if a bank fails and there are insufficient funds to cover all claims, each Coinbase customer’s account is insured up to the applicable amount per depositor.

It is important to note that FDIC insurance covers only U.S. dollar deposits held in U.S. banks and does not cover losses associated with investments in cryptocurrencies or other digital assets.

While FDIC insurance provides an additional layer of protection for cash balances, it is also crucial for customers to take necessary precautions to protect their personal information and account credentials. To ensure the safety of your funds, it is recommended to use strong passwords and enable two-factor authentication (2FA) on your Coinbase account.

These security measures add an extra layer of protection against unauthorized access to your account. While FDIC insurance provides coverage in case of bank failure, it does not offer the same level of government backing as traditional banking institutions. It is important to understand that cryptocurrencies are not backed by any government or protected by the FDIC/SIPC protections provided for traditional bank accounts or brokerage accounts.

Although Coinbase provides insurance coverage for digital assets and cash balances, it is still possible to experience a total loss despite having this insurance. Factors such as cybersecurity breaches or unexpected events can result in losses beyond the scope of insurance coverage. Coinbase keeps your money safe, even if it sometimes feels like you’ve just entered a shady casino with your life savings.

Pooled custodial accounts and pass-through insurance

Pooled custodial accounts utilize pass-through insurance to protect customer funds. This involves placing cash balances in dedicated custodial accounts, which are held by insured depository institutions used by Coinbase. The funds are then distributed among multiple customers, allowing for coverage of up to the FDIC insurance limit.

Furthermore, pass-through insurance ensures that in the event of a bank failure, each individual customer’s funds will be protected up to the applicable limit. This approach provides an additional layer of security for Coinbase customers, as their cash balances are not only held in custodial accounts but are also insured through the use of pass-through insurance.

It is important to note that while pass-through insurance provides coverage for individual customer funds, it does not cover losses resulting from fluctuations in cryptocurrency values or other market-related factors. Pass-through insurance is specifically designed to protect cash deposits.

The only thing scarier than losing all your money is realizing it was never insured in the first place.

Coverage limit and contingency factors

Coverage limits and contingency factors refer to the extent of insurance coverage provided by Coinbase for customer funds and the factors that may affect this coverage. It is important to understand these details to assess the level of protection offered by Coinbase.

In order to provide a clear understanding of coverage limits and contingency factors, the following table presents relevant information:

Coverage Limit	Contingency Factors
Pooled custodial accounts	– Regulatory changes- Financial market conditions- External events such as natural disasters

The coverage limit represents the maximum amount of insurance protection available for customer funds held in pooled custodial accounts. However, it is important to note that certain contingency factors may impact this coverage. These factors include regulatory changes, financial market conditions, and external events such as natural disasters.

Furthermore, it is essential for customers to be aware that these factors are beyond Coinbase’s control and can potentially affect the availability and extent of insurance coverage for their funds. Therefore, staying informed and understanding these contingency factors is crucial.

To exemplify the significance of these contingency factors, consider a scenario where a regulatory change reduces the coverage limit for customer funds. In such a case, customers may receive lower insurance protection than they initially anticipated. This real-life situation highlights the potential impact that contingency factors can have on coverage limits.

By acknowledging and understanding these contingencies associated with coverage limits, customers can make informed decisions regarding their investments and assess their risk tolerance accordingly. It is advisable to regularly review any updates or notifications from Coinbase regarding changes in coverage limits or other related contingency factors to ensure a comprehensive understanding of one’s financial security.

Coinbase’s list of insured depository institutions is longer than your grocery list, ensuring your funds are as protected as a paranoid porcupine in a steel cage.

List of insured depository institutions used by Coinbase

Coinbase makes use of a variety of insured depository institutions in order to safeguard customer funds. Here is an overview of the institutions used by Coinbase, along with the relevant details:

• JPMorgan Chase
• Cross River Bank
• Customers Bank
• Pathward (previously known as MetaBank)

It’s worth noting that each institution provides insurance coverage up to a certain amount for customer funds held by Coinbase. This ensures that customers are protected in the event of any issues or losses.

In addition to the mentioned institutions, Coinbase may utilize other insured depository institutions as well. These additional institutions further enhance the security measures and provide an added layer of protection for customer funds.

By utilizing multiple insured depository institutions, Coinbase aims to ensure that customer funds are secure and protected from potential risks or uncertainties. This approach helps mitigate any potential losses and offers peace of mind to customers who use the platform for their cryptocurrency transactions.

To take full advantage of these insurances offered by Coinbase, it is crucial for users to remain aware of and familiar with the list of insured depository institutions used by Coinbase. This will help them make informed decisions about their investments and ensure the safety of their funds.

Don’t miss out on the opportunity to protect your cryptocurrency investments. Stay informed about the list of insured depository institutions used by Coinbase and take advantage of the security measures in place. Safeguard your funds and trade with confidence on this renowned platform.

Conclusion

Coinbase’s FDIC insurance provides a safety net for its customers. The insurance coverage protects against the loss of funds in case of a breach or failure. This assurance gives peace of mind to users, knowing their assets are safeguarded.

It is important to note that FDIC insurance only covers fiat currency deposits, not cryptocurrencies. However, Coinbase takes extensive security measures to protect digital assets from hacking attempts, making it a trusted platform for crypto trading. The fact that Coinbase is FDIC insured was confirmed in the article “Is Coinbase FDIC Insured?”.

Five Facts About “Is Coinbase FDIC Insured?”:

• ✅ Coinbase carries crime insurance that protects a portion of digital assets against losses from theft. (Source: Team Research)
• ✅ Coinbase’s insurance policy does not cover losses resulting from unauthorized access to personal Coinbase or Coinbase Pro accounts due to a breach or loss of credentials. (Source: Team Research)
• ✅ Cryptocurrency is not legal tender and is not backed by the government. (Source: Team Research)
• ✅ Coinbase is not an FDIC-insured bank and cryptocurrency is not insured or guaranteed by the FDIC or SIPC. (Source: Team Research)
• ✅ Cash balances in Coinbase or Coinbase Pro accounts are held in custodial accounts at U.S. banks, liquid U.S. Treasuries, or USD denominated money market funds. (Source: Team Research)

FAQs about Is Coinbase FDIC Insured?

Is cryptocurrency considered legal tender and guaranteed by the government?

No, cryptocurrency is not legal tender and is not backed by the government. It is not guaranteed.

Is my personal Coinbase account covered by Coinbase’s crime insurance?

No, losses resulting from unauthorized access to your personal Coinbase account due to a breach or loss of your credentials are not covered by Coinbase’s crime insurance.

What happens in case of a covered security event?

If a covered security event occurs, Coinbase will make efforts to make you whole, but total losses may exceed insurance recoveries, so there is still a risk of fund loss.

How is my cash balance insured with Coinbase?

Cash balances are held either in custodial accounts at U.S. banks, or invested in liquid U.S. Treasuries, or USD denominated money market funds, in accordance with state money transmitter laws. Non-U.S. customers’ funds are held separately as cash in dedicated custodial accounts.

Are my cash funds FDIC insured?

To the extent that U.S. customer funds are held as cash, they are maintained in pooled custodial accounts at FDIC-insured banks. Coinbase’s custodial accounts have been set up to provide pass-through FDIC insurance coverage up to the per-depositor coverage limit (currently $250,000 per individual).