How does FDIC insurance apply to digital asset custody services?

3 answers

• Peter VuongMar 03, 2024 · 2 years ago
  FDIC insurance does not directly apply to digital asset custody services. FDIC insurance is provided by banks to protect depositors' funds in case of bank failures. Since digital assets are not considered deposits, they are not covered by FDIC insurance. However, some digital asset custody services may offer their own insurance policies to protect against theft or loss of assets. It's important to carefully review the terms and conditions of any custody service to understand the extent of insurance coverage provided.
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• li huaJul 15, 2022 · 4 years ago
  Unfortunately, FDIC insurance does not extend to digital asset custody services. FDIC insurance is specifically designed to protect depositors' funds in traditional banks. Digital assets, on the other hand, are not considered deposits and fall outside the scope of FDIC insurance. That being said, reputable digital asset custody services often implement robust security measures and insurance policies to safeguard their clients' assets. It's crucial to do thorough research and choose a custody service with a strong track record in security and asset protection.
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• officer_clawhauserJun 29, 2022 · 4 years ago
  FDIC insurance does not apply to digital asset custody services. FDIC insurance is a government-backed program that protects depositors' funds in case of bank failures. Digital assets, such as cryptocurrencies, are not considered deposits and are not covered by FDIC insurance. However, some digital asset custody services may offer their own insurance policies to protect against theft or loss of assets. It's important to understand the specific insurance coverage provided by the custody service you choose and assess whether it meets your risk tolerance and asset protection needs.
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