Coinbase Global in its first months as a public company has built a $4bn cash stockpile as it benefits from a trading frenzy and prepares for closer regulatory scrutiny.

Coinbase has socked away cash in part to weather a host of business risks in the crypto industry, according to chief financial officer Alesia Haas. The company stress-tests its balance sheet to ensure it has adequate funds on hand to prepare for a stricter regulatory regime, possible cyberattacks or potential trading declines, according to Haas. It also maintains additional cash as insurance against risks it hasn’t yet identified, she said.