Coinbase, the largest registered cryptocurrency exchange in America, has signed a significant $32.5 million contract with the U.S. Marshals Service. This deal involves Coinbase providing custody and trading services for digital assets held by the Marshals Service.

The U.S. Marshals Service is a federal agency that handles asset forfeiture, which includes the confiscation of cryptocurrency assets. This makes the secure storage and management of seized digital assets a critical part of their duties.

In a blog post, Coinbase highlighted its longstanding support for law enforcement agencies, which began in 2014 when it established its law enforcement program. Coinbase Prime, the company’s institutional crypto service, will be tasked with the secure storage, sale, trading, and exchange of valuable cryptocurrencies for the U.S. Marshals Service.

The U.S. Marshals Service stated that it will be responsible for “managing and disposing of large quantities of popular cryptocurrency assets.” Coinbase mentioned that it collaborates with every major federal, state, and local law enforcement agency in the U.S., as well as international agencies across Europe, Asia, Africa, and Latin America.

Coinbase emphasized that fostering a growing cryptoeconomy involves promoting safe and efficient markets, and that these partnerships are crucial to achieving this mission.

The U.S. government is the largest crypto holder at the nation-state level, possessing over $13.8 billion in cryptocurrency, as reported by Arkham Intelligence. Market analysts keep a close watch on U.S. government crypto transactions due to their substantial volume and potential impact on the crypto markets. Earlier this week, both the U.S. and German governments moved significant amounts of cryptocurrency, causing notable effects on the markets.

In June, Germany began selling a portion of its $2.8 billion in cryptocurrency holdings, offloading more than $195 million in a single day. This large-scale sale led to a roughly 3.5% drop in the price of Bitcoin.

Coinbase’s collaboration with the U.S. Marshals Service marks a significant step in the intersection of cryptocurrency and law enforcement, demonstrating the growing importance of secure and efficient management of digital assets in today’s financial landscape.