No. The FDIC does not insure cryptocurrency, even if an FDIC-insured bank holds it in custody. FDIC insurance covers eligible deposits—not crypto assets. A separate U.S. dollar balance may qualify for coverage if it is actually held as an eligible deposit and the applicable requirements are met.
What FDIC insurance covers—and what it does not
FDIC deposit insurance protects eligible deposits if an FDIC-insured bank fails. It does not turn every financial product offered, held, or facilitated by that bank into an insured deposit. The FDIC states that it only insures money held in a deposit account at an FDIC-insured bank and lists crypto assets among products it does not cover: FDIC Deposit Insurance.
That means the relevant distinction is what you own, not simply which institution handles it. A crypto asset remains outside FDIC deposit insurance when a bank provides safekeeping. In a July 14, 2025 joint statement, the FDIC, Federal Reserve Board, and OCC discussed risk-management considerations for banks providing or considering crypto-asset safekeeping; the agencies said the statement created no new supervisory expectations: joint statement on crypto-asset safekeeping activities.
Crypto holdings and cash balances are different
| Question | Cryptocurrency | U.S. dollar deposit |
|---|---|---|
| What do you own? | A crypto asset, not a bank deposit. | Money held in a deposit account, if that is how the balance is legally structured. |
| Does FDIC deposit insurance apply? | No, including when a bank holds it in custody. | Potentially, if it is an eligible deposit at an FDIC-insured bank and coverage requirements are met. |
| What failure does the insurance address? | FDIC deposit insurance does not insure the asset against loss. | It protects eligible deposits in the event the insured bank fails; it does not protect against a non-bank company’s bankruptcy or failure to meet its obligations. |
A balance displayed by a crypto platform is not automatically a bank deposit. The FDIC warns that money sent to a non-bank company is not insured unless and until the company places it in an insured bank. Even then, the insurance protects against the bank’s failure, not the non-bank company’s failure: FDIC guidance on crypto companies and deposit insurance.
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When cash held through a third party may qualify
Some arrangements hold customer funds at a bank through a non-bank company. In those cases, pass-through deposit insurance may apply only when the required conditions are met. The FDIC’s guide explains that, among other requirements, bank deposit records must disclose the relationship, ownership and interests must be ascertainable, and the customers must actually own the deposited funds: FDIC pass-through deposit insurance guide.
The FDIC determines whether the requirements are satisfied if the bank fails. Pass-through rules concern deposits; they do not extend deposit insurance to cryptocurrency. A platform’s claim that it uses an insured bank is not, by itself, proof that every customer balance qualifies.
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The $250,000 limit applies to covered deposits, not crypto
The standard maximum deposit-insurance amount is $250,000 per depositor, per FDIC-insured bank, per account ownership category. It applies to eligible deposits, not to crypto assets, regardless of their value or where they are held. See the FDIC’s deposit insurance information and coverage resources.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to check what protection may apply to your account
- Identify the asset. Determine whether the balance is cryptocurrency or U.S. dollars. A platform display or account label alone may not tell you how the balance is held.
- Find out who holds any cash. Check the account and custody terms for the legal name of the bank, if one holds the funds, and whether the funds are in a deposit account.
- Read who owes you the money. Review the terms to see whether you own funds deposited at the bank or instead have a claim against a non-bank company. This distinction matters if that company fails.
- Check insurance status and coverage details. Verify that the bank is FDIC-insured and use the FDIC’s coverage information or Electronic Deposit Insurance Estimator (EDIE) to assess eligible deposits and ownership categories. For funds held through a third party, the relevant account records and ownership terms also matter.
These checks can help you understand an arrangement, but they do not establish that a specific account qualifies. Coverage depends on the bank, contractual structure, ownership, and records.
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