All US Dollar deposits on Binance.US’s platform are now eligible for Federal Deposit Insurance Corporation [FDIC] insurance coverage. According to a blog post published on its official website, the United States-dedicated wing of Binance stated that all the US Dollar deposits are held in “pooled custodial accounts” at numerous banks that are FDIC insured.
The official post stated:
“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.”
FDIC provides deposit insurance to depositors in U.S. depository institutions, the other being the National Credit Union Administration, which regulates and insures credit unions. Steps that were taken by the platform so far have been toward reducing adoption hurdles and comply with regulatory obligations proposed by the financial entities of the country.
Binance.US CEO Catherine Coley had stated that the platform “takes security seriously” and that the platform prioritized “customer protection” and has measures dedicated to “protecting customers from theft and hacking”.