Binance.US has added FDIC insurance coverage for U.S. dollar deposits
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It sounds like there is a grand total $250k of FDIC insurance to cover deposits in the event of a bank failure. One pooled bank account with $250k of insurance. So, probably < 0.1% insured in the event of a problem with the bank. FDIC doesn't cover problems with the exchange.
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can you clarify FDIC coverage for cash?
Is it $250k total for all of Binance US or $250k/user account?
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It's $250k/user account.
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So, in the event of bank failure, each exchange user with a USD balance is covered individually for up to $250k? 10 users each have a balance of $500k when the bank collapses then they'll each get 50%/$250k back from FDIC?
As you point out this covers bank failure, not exchange failure or hack.
But note that this is still important for corporate clients in mitigating their already concentrated counterparty risk exposure to the few banks that'll do business with crypto companies (eg Silvergate).
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