Coinbase changes head of custody amid rush for spot bitcoin ETF approval

Coinbase earlier this year hired a new executive to head its custody department as the cryptocurrency exchange is expected to provide custody services to traditional financial institutions that have filed for spot bitcoin ETFs.

Coinbase's former CEO of the custody division, Aaron Schnarch, left the firm in recent weeks but was replaced as head of custodial services in August by Rick Schonberg, according to a Coinbase spokesperson.

The move came as major financial firms like BlackRock, Franklin Templeton and Grayscale Investments have tasked Coinbase to provide custodial services, should their funds be approved. Crypto as a whole is anxiously awaiting to see if the new ETFs are approved.

Formerly at Goldman Sachs

Before Schnarch took over as Coinbase Custody CEO, he worked as the company's vice president of product management, custody and prime platform. 

Schonberg previously served as the global head of product development for the British clearing house group LCH and senior managing director for the financial services firm State Street, in addition to four years at Goldman Sachs, according to his LinkedIn profile.