Usually, no. FDIC insurance protects qualifying deposits at an insured bank if that bank fails; it does not insure crypto assets or guarantee money held by a nonbank crypto company. A customer may qualify for pass-through coverage when a nonbank places the customer’s funds at an insured bank, but only if specific ownership, disclosure, and recordkeeping conditions are met. Even then, the insurance does not cover the crypto company’s own failure.
What does “crypto bank” mean for FDIC insurance?
“Crypto bank” is a colloquial label, not proof that you have an account at an insured bank. The key question is which legal entity holds your money and what kind of asset or claim you own.
- Direct bank deposit: You hold a deposit at an FDIC-insured bank or savings association. FDIC insurance may apply if that institution fails, subject to the coverage limit and account facts.
- Nonbank app balance: You have a claim against a crypto company or another nonbank. That balance is not automatically an insured deposit, even if the company says it works with an insured bank.
- Crypto asset or stablecoin: You hold a digital asset, not necessarily a bank deposit. The FDIC says it does not insure assets issued by nonbank entities such as crypto companies. See the FDIC’s crypto-company deposit insurance fact sheet.
The FDIC’s insurance applies to deposits held at insured banks in the event that the insured bank fails. It does not protect against losses from crypto price changes or a nonbank company’s failure.
When can a nonbank balance receive pass-through coverage?
Pass-through deposit insurance can treat qualifying funds held by an intermediary as deposits owned by the intermediary’s customers. It is not automatic, and a bank partnership alone does not establish eligibility. The FDIC evaluates whether the requirements are met if the bank fails.
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In general, the arrangement must show that:
- You actually own the funds. The account structure and agreement must establish the customer’s ownership rather than only a contractual right to payment from the app.
- The bank’s records disclose the fiduciary or agency relationship. The bank’s deposit-account records must indicate that the funds are held for others.
- Records identify each owner and amount. The relevant records must make each customer’s ownership and the amount attributable to that customer ascertainable.
These are separate from whether a provider markets its balance as “FDIC-insured.” Review the account agreement and disclosures, and ask the provider to identify the bank holding the funds and explain how customer ownership is recorded. The FDIC’s deposit insurance guidance explains the general rules.
How much is insured?
The standard maximum is $250,000 per depositor, per insured bank, per ownership category. It is not necessarily $250,000 for each app, account, or brand. Deposits you own in the same category at the same bank may be aggregated, including qualifying pass-through deposits. Coverage depends on the ownership category and account facts; consult the FDIC’s Electronic Deposit Insurance Estimator (EDIE) to estimate coverage for bank deposits.
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EDIE can help estimate coverage, but it cannot independently establish that a particular nonbank’s pass-through arrangement satisfies the legal requirements. You still need to verify the account structure and records.
What FDIC insurance does not protect
Even where customer funds qualify as deposits at an insured bank, FDIC insurance addresses the bank’s failure—not the solvency of the app or crypto company. If the nonbank becomes insolvent, goes bankrupt, or fails to honor a separate obligation, FDIC insurance does not insure against that loss. Access to funds may also be delayed while the arrangement is resolved.
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Likewise, FDIC insurance does not insure a crypto asset or stablecoin against a drop in value, a failed redemption, or a provider’s contractual failure. A company’s claim that funds are “held at a partner bank” is not a guarantee against those risks.
How to check a crypto-related account
- Identify the legal provider. Determine whether you opened an account directly with an insured bank or hold an app balance with a nonbank.
- Ask what you own. Find out whether the balance is a deposit account at the bank, a crypto asset or stablecoin, or a contractual claim against the app.
- Identify the bank holding the funds. Ask for the bank’s legal name and whether your specific funds are deposited there for your benefit.
- Read the agreement and disclosures. Look for evidence that you own the funds, that the bank’s records disclose the agency or custodial relationship, and that records identify each owner and amount.
- Aggregate deposits at the same bank. Include other deposits you hold in the same ownership category when considering the $250,000 standard limit.
- Assess company and access risks separately. Consider what happens if the nonbank fails or withdrawals are interrupted; FDIC coverage does not resolve those risks.
Stablecoin reserves and tokenized deposits: a proposed rule
On April 7, 2026, the FDIC Board approved a notice of proposed rulemaking 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, proposing that deposit-insurance treatment does not depend on the technology or recordkeeping used to record an insured institution’s deposit liabilities. These are provisions in a proposal, not a final rule; the proposal does not itself establish the current coverage of a particular product. See the FDIC’s April 7, 2026 announcement.
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