Does Coinbase use cold storage?

Coinbase uses the same “cold storage” approach it uses with its regular wallets . They store about 97 percent of their Bitcoin entirely offline in a geographically distributed set of vaults and safe deposit boxes.

Coinbase Wallet is a self-custody wallet . The private keys (that represent ownership of the crypto) are stored directly on your device and not within a centralized exchange like Coinbase.com.

Cold Storage and Crypto Vaults Coinbase and Coinbase Pro are two of the only exchanges that store 98% of crypto assets offline in secure cold storage (not on the internet) and away from the prying eyes of online hackers.