BlackRock Modifies Coinbase Custody Agreement to Require 12-Hour Withdrawals

PANews reported on September 20th that BlackRock has amended its custody agreement with Coinbase, requiring withdrawals to be processed within 12 hours. According to an SEC filing on September 16th, this modification primarily affects BlackRock's iShares Bitcoin Trust ETF and aims to enhance the withdrawal process and asset management during unsettled trades. The agreement mandates that Coinbase Custody must process transfers of Bitcoin from the custody account to blockchain addresses within 12 hours of receiving instructions, provided there is no outstanding trade credit.

This move is believed to address recent rumors concerning Coinbase's use of letters of debt instead of Bitcoin to support the ETF. However, Bloomberg analyst Eric Balchunas denied these allegations.