No. Cryptocurrency is not protected by FDIC deposit insurance, even if an FDIC-insured bank holds it in custody. FDIC insurance applies to eligible deposits at insured banks—not crypto assets or other non-deposit products. A separate U.S. dollar deposit connected to a crypto service may qualify, but only if it meets the deposit-insurance rules.
Why bank custody does not insure cryptocurrency
Custody and deposit insurance are different things. A bank may safeguard crypto assets, but that arrangement does not turn the assets into deposits. The FDIC lists crypto assets among financial products it does not insure. Its deposit insurance guidance explains that coverage is for money held in deposit accounts at FDIC-insured banks.
In a July 14, 2025 joint statement, the FDIC, Federal Reserve Board and Office of the Comptroller of the Currency described risk-management considerations for banks providing or considering crypto-asset safekeeping. The agencies said the statement created no new supervisory expectations; it did not extend deposit insurance to crypto. Read the joint statement.
Crypto holdings and related cash are not the same
A crypto platform may show both cryptocurrency and a dollar balance. The insurance question depends on what you own and where that asset is held—not simply on whether a bank is associated with the service.
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| Holding | Where it is held | What FDIC insurance may cover |
|---|---|---|
| Cryptocurrency | In a bank custody arrangement or through a crypto company | Not insured as a deposit, including when a bank provides safekeeping. |
| U.S. dollar funds | In an eligible deposit account at an FDIC-insured bank | May be insured if applicable ownership, recordkeeping and other requirements are met. |
| Money sent to a non-bank crypto company | At the company, before it is deposited at an insured bank | Not FDIC-insured while held by the non-bank. FDIC insurance does not cover that company’s bankruptcy or failure to meet its obligations. |
The FDIC cautions that money sent to a non-bank company is not insured unless and until the company places it in an insured bank. Even then, coverage protects against the insured bank’s failure; it does not insure against the non-bank company’s failure. The FDIC’s consumer guidance on financial technology companies explains this distinction.
When dollars held through a third party may qualify
Some arrangements place customers’ funds in an insured bank through a non-bank intermediary. FDIC pass-through coverage is not automatic: among other conditions, the bank’s deposit records must disclose the third-party relationship, the customers’ ownership interests must be ascertainable, and the customers must actually own the deposited funds. If the bank fails, the FDIC determines whether the requirements are satisfied. These rules concern deposits, not cryptocurrency. See the FDIC’s pass-through insurance guide.
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A platform’s statement that it works with an insured bank does not by itself establish that a customer’s balance is an insured deposit. The account structure, records and terms determine who owns the funds and who owes them to the customer.
What the $250,000 limit means
The standard maximum deposit-insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. It applies to eligible deposits—not to crypto assets. The limit is not a guarantee for cryptocurrency held at a bank or on a platform. The FDIC explains coverage limits and ownership categories.
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- Identify the asset. Determine whether the balance is cryptocurrency or actual U.S. dollars. A displayed “cash” balance is not necessarily a bank deposit in your name.
- Find where any dollars are held. Check the account terms for the legal name of the bank and whether funds are deposited there, rather than still held by a non-bank company.
- Read the ownership and custody terms. Look for who legally owns the funds, who owes them to you, and how the account and customer interests are recorded. Do not assume pass-through coverage applies without these details.
- Verify the bank and estimate deposit coverage. Use the FDIC’s BankFind tool to check a bank’s insured status and its Electronic Deposit Insurance Estimator (EDIE) to review deposit coverage. Neither tool makes cryptocurrency insured.
For a particular account, coverage can depend on its contractual structure, ownership and records. The FDIC’s general guidance cannot establish that a specific platform arrangement qualifies.
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