Binance.US announced that its customer’s dollar deposits are now eligible for FDIC insurance coverage.
Binance.US — the United States-focused wing of major cryptocurrency exchange Binance — announced that its customer’s dollar deposits are eligible for Federal Deposit Insurance Corporation (FDIC) insurance coverage.
FDIC insures deposits up to $250,000
In a blog post on Oct. 18, Binance.US announced that the exchange holds its U.S. dollar deposits in pooled custodial accounts at different banks that are insured by the FDIC, which is a United States government agency designed to protect consumers and the U.S. financial system. Binance.US explained:
“The pooled custodial accounts are maintained in a manner that provides access to pass-through FDIC insurance coverage up to the depositor coverage limit, which is currently $250,000. FDIC insurance coverage protects depositors against the risk of loss in the event that an FDIC-insured bank fails.”
The FDIC was established in 1933 to provide confidence in the stability of the U.S. financial system and prevent the widespread closure of banks during the Great Depression.
Cointelegraph reported in May that institutional cryptocurrency prime dealer SFOX started offering state-insured bank accounts for its traders. SFOX stated at the time that the move was an industry first.
Binance raises margin leverage and starts accepting fiat
Binance CEO Changpeng Zhao recently confirmed that the crypto exchange began accepting fiat currencies through online payment service Alipay and mobile messaging and payment app WeChat. Zhao explained that Binance is not working directly with WeChat or Alipay and that users are still able to use them for peer-to-peer transactions.