Coinbase Says 99% of Customer Crypto Is Held Offline

Coinbase said November 4 that more than 99% of its customers’ crypto assets are held in offline cold storage, outlining its custody safeguards after Binance disclosed a major security breach. Coinbase also said the October 29 incident did not affect its systems or customer funds. The cold-storage figure is Coinbase’s own report and has not been independently verified in the reporting. The company said customer assets remain their property, are backed one-to-one and are not lent or used without customer authorization. It keeps some funds in internet-connected hot wallets to support withdrawals and transfers, while moving excess balances into offline storage. Coinbase described controls intended to limit unauthorized transfers, including private keys split across systems, transaction limits, anomaly detection and emergency controls that can stop signing operations. It said transactions require multiple safeguards and that no single person or machine holds a complete key. The company also said its security response includes monitoring for suspicious activity. The exchange reported $376.6 billion in assets on its platform as of September 30, 2026, a figure also rounded to $377...