Coinbase Head Of Custody Was Changed To Support Spot Bitcoin ETF Launch

Key Points:

• Aaron Schnarch exits as Coinbase head of custody, replaced by Rick Schonberg, signaling a shift in leadership as the crypto giant prepares for Bitcoin ETF services.
• Coinbase stands out as the favored custodian for major Bitcoin ETF applicants.

According to Bloomberg, Aaron Schnarch, the former Coinbase head of custody, has left the company, paving the way for Rick Schonberg to assume the role as of August.

Read more: Coinbase Stock Short Sellers Lost More Than $4.2 Billion In 2023

Coinbase Head Of Custody Was Changed Amid Bitcoin ETF Readiness

Schonberg, a seasoned professional with prior experience at Goldman Sachs, State Street, and Tagomi, took over the Coinbase head of custody as the company gears up to offer services for spot Bitcoin exchange-traded fund (ETF) applicants.

Coinbase, recognized as the preferred custodian for Bitcoin ETF applicants such as BlackRock, Franklin Templeton, and Grayscale Investments, plays a crucial role in safeguarding tokens through its custody services. With Schnarch’s departure, the crypto giant assures stakeholders of its readiness for potential ETF approvals.

“We have extensively prepared for ETF approval,” stated a Coinbase spokesperson. “Our systems have been designed and tested to handle added trading volume, increased liquidity, and general increases in demand on our systems.”

Operating as a trust company, Coinbase Custody adheres to regulatory oversight from the New York Department of Financial Services and undergoes audits by Deloitte & Touche.

Meanwhile, in a strategic move, BlackRock has revamped its operational approach, replacing the “Prime Broker” role with a “Prime Execution Agent” in its recent update. Notably, Coinbase’s shift from Prime Broker to Prime Execution Agent suggests a potential realignment of responsibilities in managing BlackRock’s ETF. As a Prime Execution Agent, Coinbase is perceived to focus on processing buy or sell orders for the ETF, indicating a nuanced role compared to the broader spectrum associated with a Prime Broker.