Blackrock Updates Custody Deal with Coinbase, Enforcing 12-Hour Bitcoin Withdrawal Rule

Blackrock, have filed an amendment with SEC demanding that Coinbase ETF custodian Coinbase, must settle on-chain withdrawals within 12 hours of being requested.

This happens after concerns from investors about the time Coinbase take to process withdrawals requests forcing the Blackrock to step in an update their agreement with them. Now the ETF custodian Coinbase, must follow all the instructions on the amendment or else might have to respond to the regulator.

But what is that amendment is all about about?

Blackrock have partnered with Coinbase to be their ETF custodian from their product IBIT, and process all things related to Bitcoin when asked. They in practice hold the Bitcoin from Blackrock and process withdrawals when asked, but they are delaying on withdrawals settlement as investors have shown concerns.

So the asset management Fund, is telling Coinbase to give their customers Bitcoin on 12 hour time or else, they will have problems with them first, then with the regulator.

The amendment is like an "upgrade" in their agreement and also comes in line with customers desires, after all, doesn't make sense ask for Bitcoin and get it days later. Right now the ETF custodian Coinbase is obligated by law to fulfill this on time or get penalized for not comply.

Blackrock is working hard to follow all what customers want and ensure that they are happy and served accordingly. Hmm, good move Blackrock.

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