# Coinbase Says More Than 99% of Customer Assets Are in Cold Storage

By Simon Yoon

Canonical URL: https://www.tokenpost.com/news/technology/49071
Published: 2026-11-05T05:48:22.000Z
Updated: 2026-11-05T05:48:22.000Z
Section: Technology

> A small share remains in hot wallets for withdrawals. Coinbase says its custody vault product is held entirely in cold storage.

Coinbase said Wednesday that more than 99% of customer assets are held in cold storage, detailing safeguards after reports of a Binance hot-wallet incident and saying its own systems and customer funds were unaffected.

The company keeps a small amount in hot wallets to meet withdrawal needs and continuously moves excess assets back to cold storage. Assets in its custody vault product are held entirely in cold storage and segregated onchain.

Coinbase said private keys used for cold custody are split into pieces and are not reassembled during signing. It limits how quickly assets can move from cold wallets to hot wallets, monitors for unusual activity and can halt signing by taking keys offline.

The company said it holds customer assets on a 1:1 basis and does not lend or use them without customer instructions.