In the event Coinbase goes bankrupt, it says its users would be considered to be “general unsecured creditors” and might lose all the cryptocurrency in their accounts if it is stored in a wallet controlled by the exchange company.
Goldman Sachs’ startup cryptocurrency company, Circle, is launching the US Dollar Coin, or USDC, with the goal of replacing US currency. Coinbase, which is owned by the Federal Reserve, is on track to become the nation’s crypto-regulatory agency.