Coinbase vs Kraken: which one is safer?
These are the two most heavily licensed venues we grade, and on four of the five checks our findings are the same. The whole two-step grade gap comes down to one column — proof of reserves, which carries 30% of the grade — and to whether anybody outside the company has looked at the numbers.
Five weighted checks, side by side. Checks where the two differ: 1.
The two records
Same rubric, same five checks, both letters derived the same way.
Coinbase
Grade B, 3.7 out of 5
Coinbase is a publicly traded, SEC-reporting U.S. company licensed in 45 states and holding a New York BitLicense, and the SEC's 2023 case against it was dismissed with prejudice in February 2025; it runs no crypto-specific proof-of-reserves programme and its last disclosed crime-insurance figure dates from 2019.
2 of 5 checks disclosed, 3 partial, 0 missing.
Kraken
Grade A-, 4.3 out of 5
Kraken holds a Wyoming SPDI charter, CFTC and SEC registrations and two EU MiCA authorisations, and has published Merkle-tree proof of reserves verified by Armanino LLP since February 2022; it discloses no insurance-fund figure.
3 of 5 checks disclosed, 2 partial, 0 missing.
Check by check
Five weighted checks, side by side. Checks where the two differ: 1.
Proof of reserves 30%
They differ hereWhat “Proof of reserves” meansCoinbase: Partial or unaudited
Runs no exchange-wide proof-of-reserves programme; reserve assurance rests on its Deloitte-audited filings as an SEC-reporting public company, plus per-asset attestations for wrapped tokens such as cbBTC.
Kraken: Disclosed
Merkle-tree proof of reserves verified by third-party accountant Armanino LLP since February 2022, most recently finalised 30 June 2025 across BTC, ETH, SOL, USDC, USDT, XRP and ADA.
Custody 25%
Same findingWhat “Custody” meansCoinbase: Partial or unaudited
Coinbase Custody is an NYDFS-regulated qualified custodian, but the cold/hot storage split is not disclosed and we could not confirm it from a primary source.
Kraken: Partial or unaudited
Cold/hot storage split is not disclosed; we could not confirm it from a primary source.
Regulation 20%
Same findingWhat “Regulation” meansCoinbase: Disclosed
New York BitLicense, FinCEN MSB registration, UK FCA registration FRN 900635 and licences in 45 U.S. states; paid a $100m NYDFS consent order in January 2023, and the SEC's 2023 unregistered-exchange suit was dismissed with prejudice on 27 February 2025.
Kraken: Disclosed
Wyoming Special Purpose Depository Institution charter, CFTC DCM/DCO/FCM and SEC broker-dealer/RIA registrations, and two EU MiCA CASP authorisations; settled with the CFTC for $1.25m in September 2021 and with the SEC for $30m in February 2023 over its U.S. staking-as-a-service programme, relaunching on-chain U.S. staking in January 2025.
Insurance 15%
Same findingCoinbase: Partial or unaudited
A $255m crime policy covering hot-wallet assets was disclosed in 2019; Coinbase still advertises commercial crime cover for custodied assets but has not confirmed a current figure.
Kraken: Partial or unaudited
No insurance-fund figure is publicly disclosed. Our research found no SAFU-equivalent named fund, which is a disclosure gap rather than confirmation that none exists.
Incident history 10%
Same findingCoinbase: Disclosed
No confirmed platform-level breach of customer funds found in our research.
Kraken: Disclosed
No confirmed major security incident found in our research; Kraken has operated since 2011 with no reported breach costing customers funds.
What the difference actually is
Kraken publishes Merkle-tree proof of reserves verified by third-party accountant Armanino LLP, running since February 2022 and most recently finalised on 30 June 2025 across BTC, ETH, SOL, USDC, USDT, XRP and ADA. Coinbase runs no exchange-wide proof-of-reserves programme; its reserve assurance rests on Deloitte-audited filings as an SEC-reporting public company, plus per-asset attestations for wrapped tokens such as cbBTC. That is stronger than nothing and weaker than a proof you can check your own balance against — and because proof of reserves carries 30% of the grade, one differing column produces the whole gap between A- and B. On the other four they are closer than the letters suggest. Both licence books are checkable: Kraken holds a Wyoming Special Purpose Depository Institution charter, CFTC DCM, DCO and FCM registrations, SEC broker-dealer and RIA registrations, and two EU MiCA CASP authorisations; Coinbase holds a New York BitLicense, a FinCEN MSB registration, UK FCA registration FRN 900635 and licences in 45 U.S. states. Neither discloses its cold/hot storage split. Neither has a confirmed platform-level breach of customer funds in our research. Both are marked partial on insurance, though not identically: Coinbase has a figure on the record that has gone stale — $255m of crime cover disclosed in 2019 — while Kraken publishes no insurance-fund figure at all. And both carry settlements: Kraken $1.25m with the CFTC in September 2021 and $30m with the SEC in February 2023 over its U.S. staking-as-a-service programme, with on-chain U.S. staking relaunched in January 2025; Coinbase a $100m NYDFS consent order in January 2023, with the SEC's 2023 suit dismissed with prejudice on 27 February 2025.
What neither of them shows you
Both records come back short on these checks — 40% of the grade, where the letter difference tells you nothing and you are taking both venues at their word.
Custody 25%
Coinbase: Partial or unaudited
Kraken: Partial or unaudited
Insurance 15%
Coinbase: Partial or unaudited
Kraken: Partial or unaudited
Which one, and when
Choose Coinbase if
On these five checks, nothing here favours Coinbase: it matches Kraken on four and is behind on the fifth. The reasons somebody might still pick it — whether it operates where you live, which assets and products you need, what it costs to trade — are real, and none of them is what this page measures. Choose it knowing there is no reserve proof you can verify yourself.
Read the Coinbase reportChoose Kraken if
you want to check your own balance against a reserve proof an outside firm has signed — the single check that separates these two, and the heaviest one in the rubric — and you can accept that no insurance-fund figure is published at all and that the cold/hot storage split is not disclosed.
Read the Kraken reportHow to read these grades: each is derived from published, checkable disclosures — proof-of-reserves attestations, public regulatory registers, disclosed insurance funds and the documented incident record — using the weighted rubric below. Where an exchange does not disclose something, we mark it unverified rather than assume it. These are not audits and not investment advice; they reflect what was published as of our last review. Cryptocurrency investments carry risk, including loss of principal. Nothing on KripZen is financial advice — always do your own research before buying, trading or moving funds.
Where to go from here
The rest of the graded ledger, and the rubric both letters came from.