Coinbase: Over 99% of user assets are stored in cold wallets, with private keys split and stored separately.

BlockBeats news, November 4: Coinbase published a post introducing its user asset protection mechanisms and stated that it was not affected by Binance's previous hot wallet security incident; currently, neither the platform systems nor user funds have been affected. Coinbase said that more than 99% of user assets are currently held in cold wallets, while hot wallets retain only a small amount of funds to meet users' daily withdrawal and usage needs, with balances dynamically adjusted based on deposit and withdrawal demand. Its institutional custody vault assets are all held in cold storage and are independently isolated on-chain.

In terms of fund transfer security, Coinbase uses distributed key protection, withdrawal limits, abnormal activity monitoring, and emergency stop mechanisms. Cold wallet private keys are stored in shards and are never fully reconstructed during the signing process; key signing services in the hot wallet production environment also do not allow independent access by a single person. If abnormal transactions or a surge in withdrawals are detected, the system will trigger investigations and limits, and if necessary, some or all fund transfers can be suspended by shutting down signing keys.

Coinbase also stated that user assets are always held by users, and the platform holds assets on a 1:1 basis and will not lend or misappropriate them without user instruction. As of September 30, 2026, Coinbase's platform assets reached $377 billion, with $8.6 billion in cash and cash equivalents and $2.2 billion in investment crypto assets. The company said that as the development of AI capabilities changes the security risk landscape, it will continue to increase investment in security technology.