How your money is protected changes with the upgrade. Here is what stays the same and what is different.
Your current checking account
Your checking account is provided by Regent Bank, Member FDIC. Your balance stays eligible for pass-through FDIC insurance until you move it, withdraw it, or the account closes. FDIC insurance only covers the failure of insured depository institutions. Certain conditions must be satisfied for pass-through FDIC deposit insurance to apply.
Your global account
Your global account is not FDIC and SIPC insured. Assets are not bank deposits and may lose its value. Your balance is held as digital dollars. For customers outside of the European Economic Area, it is backed 1:1 by cash and short-duration US Treasuries through Bridge, a Stripe company. For customers in the European Economic Area, it is backed by Circle, the issuer of USDC. GrabrFi does not hold or touch your balance.
These safeguards are not insurance. They reduce certain risks, they do not remove them.
In short
Your current checking account is FDIC insured. Your global account is not, and it is protected in a different way: by reserves held one to one and kept separate, rather than by government insurance. Both are real forms of protection, and they work differently.