Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
Coinbase Global Inc. (NASDAQ: COIN) is shaking up its custody division.
Aaron Schnarch, who served as the CEO of Coinbase Custody, has left the company, Bloomberg reported.
Rick Schonberg has taken over the role, bringing experience from his previous positions at Goldman Sachs (NYSE: GS), State Street, and Tagomi, according to his LinkedIn profile.
Coinbase has emerged as a preferred custodian for Bitcoin ETF applicants, including notable names like BlackRock Inc. (NYSE: BLK), Franklin Templeton, and Grayscale Investments.
The provision of custody services is crucial for the management of potential spot-bitcoin ETFs, as these services are key to ensuring the security of the tokens for investors.
A spokesperson from Coinbase said, “We have extensively prepared for ETF approval. Our systems have been designed and tested to handle added trading volume, increased liquidity, and general increases in demand on our systems.”
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This preparation highlights Coinbase's readiness to support the increased operational demands that ETF approval would entail.
Coinbase Custody operates as a trust company and is regulated by the New York Department of Financial Services.
It also undergoes auditing by Deloitte & Touche, ensuring compliance and reliability in its operations.
The pursuit of U.S. regulatory approval for the first ETF that directly invests in Bitcoin is intensifying.
The U.S. Securities and Exchange Commission (SEC) is facing a deadline of Jan. 10 to decide on the spot Bitcoin ETF application submitted by Cathie Wood’s ARK Investment Management LLC and 21Shares, along with other similar applications.
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