Coinbase Prime, the institutional arm of the popular cryptocurrency exchange, has announced a significant custody shake-up, revealing plans to end support for 49 altcoins by the end of April. The affected tokens include Telcoin, Cellframe, BOSAGORA, and several lesser-known assets linked to niche blockchain projects. This move reflects Coinbase’s strategic shift toward more liquid and institutional-grade assets, ensuring compliance with evolving market standards and regulatory expectations.
Reasons Behind the Delisting
While Coinbase has not provided specific reasons for removing these assets, analysts speculate that the decision is driven by multiple factors. Some believe the delisting is a response to regulatory pressures, particularly as global financial authorities tighten oversight on crypto custody services. Others suggest that Coinbase is streamlining its institutional offerings, focusing on assets with higher liquidity and stronger market demand.
Additionally, some of the delisted tokens have low trading volumes, making them less attractive for institutional investors. The move aligns with Coinbase’s broader strategy to enhance security and compliance, ensuring that its platform remains a trusted choice for large-scale investors.
Impact on Investors
For institutional clients using Coinbase Prime, this change means they will need to transfer or liquidate their holdings before the end of April 2025. Investors holding these tokens must find alternative custody solutions or sell their assets to avoid disruptions. Some of the affected tokens, such as Telcoin and Oraichain Token, have seen price fluctuations following the announcement, with mixed reactions from the market.
Shogun Lin
