No. Your stablecoin wallet balance is not covered by FDIC insurance.
What is FDIC insured?
Only your USD checking account balance is FDIC insured. Your GrabrFi checking account is held at Regent Bank, Member FDIC, and is insured up to $250,000 per depositor.
Why is the stablecoin wallet not insured?
Stablecoins are digital assets, not bank deposits. FDIC insurance only applies to deposits held at FDIC-insured banks. Your stablecoin wallet holds USDB (a USD-pegged stablecoin issued by Bridge, a Stripe company) or USDC (issued by Circle), not US dollars.
Stablecoins in your wallet:
Are not bank deposits
Are not guaranteed by any bank
Are not insured by the FDIC or SIPC
Do not accrue interest or yield to you
How is my stablecoin balance protected?
While not FDIC insured, your stablecoin balance is backed by the reserves of the stablecoin issuer:
USDB is backed 1:1 by US dollar reserves held in segregated, bankruptcy-remote accounts. Reserves include US Treasuries, money market funds, and cash.
USDC is backed 1:1 by US dollars and US Treasuries held in reserve by Circle.
Your wallet is custodied by Bridge Building Arx LLC, which holds the private keys on your behalf. You own all right and title to the stablecoins in your wallet.
Recommendation
Important: For maximum protection, keep funds in your USD checking account when you do not need them for stablecoin transfers. Only keep the amount in your stablecoin wallet that you plan to use for upcoming transfers.
Summary
USD Checking Account | Stablecoin Wallet | |
FDIC insured | Yes (up to $250,000) | No |
Insured by | FDIC through Regent Bank | Not insured |
Backed by | US dollars at Regent Bank | Stablecoin issuer reserves (Bridge or Circle) |
Asset type | Bank deposit | Digital asset (stablecoin) |