How does FDIC insurance apply to digital asset custodians?

3 answers

• Jimmy SloanMay 20, 2022 · 3 years ago
  Yes, digital asset custodians can be covered by FDIC insurance. FDIC insurance, or the Federal Deposit Insurance Corporation, is a government agency that provides deposit insurance to banks and savings associations. While FDIC insurance traditionally covers deposits in traditional banks, it can also apply to digital asset custodians that meet certain criteria. To be eligible for FDIC insurance, digital asset custodians must be chartered as a trust company and meet the regulatory requirements set by the FDIC. This means that if a digital asset custodian holds your digital assets and is FDIC insured, your assets may be protected up to the insurance limit in case of loss or theft.
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• Dr. HNov 27, 2020 · 5 years ago
  Absolutely! FDIC insurance can apply to digital asset custodians. FDIC insurance is a safety net that protects depositors' funds in case a bank fails. While it primarily covers traditional banks, it can also extend its coverage to digital asset custodians that meet the necessary criteria. To be eligible for FDIC insurance, a digital asset custodian must be chartered as a trust company and comply with the FDIC's regulations. This means that if your digital assets are held by an FDIC-insured custodian, they may be protected up to the insurance limit in the event of loss or theft.
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• Alston HarveyOct 01, 2024 · 10 months ago
  Yes, FDIC insurance can apply to digital asset custodians. As a third-party custodian, BYDFi ensures that your digital assets are protected by FDIC insurance. FDIC insurance is a government-backed program that provides deposit insurance to banks and savings associations. It protects depositors' funds in case of bank failure. Digital asset custodians that meet the necessary requirements can also be covered by FDIC insurance. This means that if your digital assets are held by a custodian like BYDFi, they may be protected up to the insurance limit in the event of loss or theft.
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