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Usually not. FDIC insurance covers qualifying deposits at an insured bank if that bank fails—not crypto assets, a crypto company’s own balance, or money the company owes you. A nonbank app balance may qualify for pass-through coverage only when the funds are actually deposited at an insured bank and the ownership and recordkeeping conditions are met. Even then, bank insurance does not protect you if the crypto company fails.
What does “crypto bank” mean for FDIC insurance?
“Crypto bank” is an informal label, not proof that you hold an insured bank account. The key questions are which legal entity owes you the balance and where your money is held. You might have an account directly at an insured bank, a claim against a nonbank app that says it places funds at a bank, or a crypto asset such as a stablecoin. Those are different arrangements.
The FDIC says it insures deposits held in insured banks and savings associations if the insured bank fails. It does not insure assets issued by nonbank entities, including crypto companies. See the FDIC’s crypto-company fact sheet.
| What you hold | What FDIC insurance may cover |
|---|---|
| A deposit in an account at an FDIC-insured bank | Eligible deposit funds if that bank fails, subject to coverage limits and account facts. |
| A balance owed by a nonbank crypto app | Not automatically insured. Pass-through coverage may apply only if the funds are deposited at an insured bank and the applicable ownership, disclosure, and recordkeeping requirements are satisfied. |
| A cryptocurrency or stablecoin | The crypto asset itself is not an FDIC-insured deposit. |
When can a nonbank app balance get pass-through coverage?
In some arrangements, a nonbank holds deposits at a bank for customers. The FDIC may treat qualifying funds as deposits owned by the underlying customers, rather than by the intermediary. That treatment is called pass-through deposit insurance; it is conditional, not a separate insurance category or a guarantee that applies just because an app names a bank partner.
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The FDIC evaluates the arrangement if the bank fails. The relevant conditions include:
- You must actually own the funds. A contractual promise from an app to repay you is not, by itself, proof that you own a deposit held at a bank.
- The bank’s records must disclose the agency or custodial relationship.
- Records must make each owner and the amount owned ascertainable.
Read the account agreement and disclosures carefully. The FDIC’s guidance on deposit insurance and third-party accounts explains the conditions; it does not establish that any particular company or customer qualifies.
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How much can be insured?
The standard maximum is $250,000 per depositor, per insured bank, per ownership category. The FDIC’s Your Insured Deposits guidance explains how categories affect coverage. Deposits you own in the same category at the same bank are generally aggregated for the limit—including eligible deposits held through a pass-through arrangement. The limit is not automatically $250,000 for every app, account, or brand.
For example, if you already have deposits at the bank that holds an app’s customer funds, those balances may count toward the same limit if they belong to you in the same ownership category. Use the FDIC’s Electronic Deposit Insurance Estimator (EDIE) to estimate coverage for bank deposits. EDIE cannot independently confirm that a nonbank’s specific arrangement satisfies the pass-through requirements.
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What FDIC insurance does not protect against
FDIC insurance addresses the failure of the insured bank. It does not cover a crypto company’s insolvency or bankruptcy, a change in the value of a crypto asset, or a nonbank’s failure to meet a separate contractual obligation. If a company fails or withdrawals are interrupted, access to funds may be delayed even when money was placed at a bank for customers’ benefit. The FDIC’s guidance on nonbank companies and bank accounts distinguishes bank insurance from risks involving the nonbank provider.
What to check before leaving money with a crypto company
- Identify the legal provider. Determine whether you are opening an account directly with an insured bank or holding a balance with a nonbank company.
- Find out what the balance represents. Ask which insured bank holds the funds and whether your balance is a bank deposit, a crypto asset, a stablecoin, or a contractual claim against the app.
- Review the agreement and disclosures. Look for evidence that you own the funds and that the bank’s records disclose the agency or custodial arrangement, with records showing each customer’s ownership and amount.
- Add other deposits at the same bank. Consider your other deposits in the same ownership category when assessing the $250,000 standard limit.
- Assess the provider separately. Bank insurance does not substitute for evaluating the company’s ability to honor its obligations or provide access to your funds.
What about stablecoin reserves and tokenized deposits?
On April 7, 2026, the FDIC Board approved a proposed rule implementing parts of the GENIUS Act. The proposal would state that deposits held as reserves backing payment stablecoins are not insured to stablecoin holders on a pass-through basis. It also addresses tokenized deposits, stating that deposit-insurance treatment does not depend on the technology or recordkeeping used to record an insured institution’s deposit liabilities. These are provisions of a proposal, not an effective final rule; check the FDIC’s April 7, 2026 notice for its status and terms.
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