Coinbase, the largest cryptocurrency exchange in the US, has appointed a new leader for its custody division, providing secure digital asset storage for institutional clients. Rick Schonberg, a financial industry veteran, took over as the head of custodial services in August, replacing Aaron Schnarch, who left the company recently.
The change in leadership comes at a critical time for Coinbase Custody, as it is expected to play a vital role in approving the first spot bitcoin exchange-traded fund (ETF) in the US. A spot bitcoin ETF is a fund that tracks the price of bitcoin and holds the underlying asset in custody rather than using derivatives or other instruments.
Several major financial institutions, such as BlackRock, Franklin Templeton, and Grayscale Investments, have filed applications for spot bitcoin ETFs with the US Securities and Exchange Commission (SEC) and have chosen Coinbase Custody as their custodian. The SEC has yet to approve any of these proposals, but the crypto community is eagerly anticipating a positive decision in the near future.
Coinbase Custody: A Global Crypto Security Leader
Coinbase Custody is one of the world’s most trusted and experienced providers of crypto custody services, with over $100 billion in assets under custody as of December 2023. It offers a range of features, such as offline storage, insurance coverage, regulatory compliance, and third-party auditing, to ensure the safety and security of its clients’ funds.
Rick Schonberg, the new head of Coinbase Custody, brings a wealth of expertise and knowledge to the position, having worked for several prominent firms in the traditional financial sector. He was previously the global head of product development for LCH, a leading clearing house group based in the UK, and the senior managing director for State Street, a global financial services company. According to his LinkedIn profile, he also spent four years at Goldman Sachs.
Before joining Coinbase Custody, Schonberg was the vice president of product management, custody, and prime platform at Coinbase, where he worked closely with Schnarch, the former CEO of the custody division. Schnarch, who left Coinbase recently, had been leading the custody unit since January 2022, when he was promoted from his previous role as the vice president of product management, custody, and prime platform.
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