Insurance

Digital Balances

Coinbase, Inc. (“Coinbase”) and other operating subsidiaries are covered by Coinbase Global, Inc.’s  crime insurance that protects a portion of digital currencies 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. Our policy also does not cover non-fungible tokens. It is your responsibility to use a strong password and maintain control of all login credentials. Digital currency is not legal tender and is not backed by any government. Coinbase is not an FDIC-insured bank and digital currency is not insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”), the 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 funds may still be at risk.

Cash Balances

Cash balances you store with Coinbase are held as a balance in your Coinbase account(s). For U.S. customers, Coinbase combines your balance with the balances of other customers (plus some cash we contribute for operational reasons) and holds those funds in custodial accounts at U.S. financial institutions and/or invests those funds in liquid U.S. Treasuries, USD denominated money market funds, or other permissible investments in accordance with state money transmitter laws. Funds could be held in any one of these manners 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 these 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 insured 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. Below is a list of the insured depository institutions at which Coinbase may deposit customer U.S. Dollar funds:

• JPMorgan Chase

• Cross River Bank

• Customers Bank

• VyStar Credit Union (Retail customer funds only)

• Pathward (previously known as MetaBank)

[as of October, 2024]