No. Your stablecoin wallet balance is not covered by FDIC insurance.
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.
What is FDIC insured?
As a financial technology company, not a bank, GrabrFi is not FDIC insured. However, our partner US bank, Regent Bank, which holds the money in your checking account, is FDIC insured.
As a customer of GrabrFi, you are eligible for what is called pass-through FDIC insurance through Regent Bank, Member FDIC. This means that the money in your checking account is placed at an insured bank (Regent Bank) through a third party (GrabrFi) and it is protected up to $250,000 USD. This applies to both foreign nationals and US citizens.
FDIC insurance only protects against the failure of depository institutions including banks, and certain conditions must be satisfied for pass-through FDIC deposit insurance to apply.
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
Summary
USD Checking Account | Stablecoin Wallet | |
Provider | Regent Bank, Member FDIC | Bridge (a Stripe company) and Circle |
Asset type | Fiat, US dollars | Digital asset, USD stablecoins |
Value backed by | US government | Stablecoin issuer reserves |