According to Coinbase's support page, all digital currency that Coinbase holds online is insured. Coinbase holds minimal customer funds online, while the rest is held in cold storage. Note that the insurance policy covers any losses resulting from a breach of Coinbase’s physical security, cybersecurity, or employee theft. This insurance policy does not cover any losses resulting from the compromise of your individual Coinbase account. Digital currency is not legal tender, is not backed by the government, and digital currency accounts and value balances on Coinbase are not subject to Federal Deposit Insurance Corporation or Securities Investor Protection Corporation protections. For US customers, Coinbase stores all customer fiat currency (government-issued currency) in, custodial bank accounts, or in U.S. Treasuries. If you are a United States resident, your Coinbase USD Wallet is covered by FDIC insurance, up to a maximum of $250,000.