Coinbase has publicly reaffirmed that more than 99% of customer assets are held in offline cold storage, responding to heightened security concerns after rival Binance suffered a hot wallet exploit exceeding $6.3 billion.
On November 4, 2026, Coinbase CEO Brian Armstrong and the exchange’s official account emphasized that secure custody is "daily work," citing 1:1 backing, audited financials, key splits, and no single points of failure. The company also highlighted the use of multi-party computation (MPC) and distributed signatures to protect user funds.
The statement comes as hot wallet vulnerabilities again place centralized exchange security standards under scrutiny. Coinbase is positioning itself as a regulated institutional custodian, while the broader industry faces increasing pressure for real-time proof-of-reserve verification and stricter cold storage requirements.
