[Coinbase: Over 99% of User Assets Stored in Cold Wallets, Private Keys Split for Storage] BlockBeats reported on November 4th that Coinbase issued a statement outlining its user asset protection mechanism, stating that it was unaffected by the previous Binance hot wallet security incident and that neither the platform system nor user funds have been impacted. Coinbase stated that over 99% of user assets are currently stored in cold wallets, with hot wallets holding only a small amount of funds to meet daily withdrawal and usage needs, and the balance dynamically adjusted based on deposit and withdrawal demand. Its institutional custodian vault assets are all cold-stored and independently isolated on-chain. Regarding fund transfer security, Coinbase employs distributed key protection, withdrawal limits, abnormal activity monitoring, and emergency stop mechanisms. Cold wallet private keys are split for storage and are not fully reconstructed during the signing process; the key signing service in the hot wallet production environment also does not allow independent access by a single person. If abnormal transactions or a surge in withdrawals are detected, the system will trigger an investigation and limits, and if necessary, can suspend some or all fund transfers by disabling the signing key. Coinbase also stated that user assets are always held by the users, with the platform holding assets on a 1:1 basis, and will not lend or misappropriate them without the user's instruction. As of September 30, 2026, Coinbase's platform assets totaled $377 billion, including $8.6 billion in cash and cash equivalents and $2.2 billion in investment crypto assets. The company stated that as AI capabilities evolve and change the security risk landscape, it will continue to increase investment in security technologies. [Original Link]