BlackRock Amends Coinbase Custody Agreement, Adds 12-Hour Withdrawals for Bitcoin ETF

Sep 23, 2024, 11:41 AM

BlackRock has amended its custody agreement with Coinbase to require 12-hour withdrawals amid debt rumors. The amendment, detailed in a filing with the SEC, updates Section 2.1 of the Custodial Services Agreement. BlackRock's Bitcoin ETF is also part of this new agreement. Concerns have also been raised regarding Coinbase's cbBTC, a token representing Bitcoin. If Coinbase loses the underlying Bitcoin backing cbBTC, users may only receive a proportional share of the remaining Bitcoin, not the full value. This has led to criticism about Coinbase's transparency, as it does not provide a Proof of Reserves like other platforms.