It’s a new day and another remarkable win for the cryptocurrency industry.
In a move that is arguably the first of its kind, crypto trading platform SFOX announced today that it has through a partnership with New-York based M.Y Safra Bank, secured FDIC insurance for user accounts on its platform.
For the basics, the Federal Deposit Insurance Corporation (FDIC) is a U.S government corporation that offers insurance for local commercial banks and savings institutions. The new deal announced by SFOX means that the platform’s users will now have their cash reserve on the exchange secured up to the tune of $250,000 per customer with the FDIC.
Funds and institutional investors will only have to “request for ‘Segregated FBO Accounts,’ on SFOX, enabling them to keep their funds in their own name with the bank,” the announcement confirms.
SFOX’s CEO, Akbar Thobhani in the same announcement also expressed delight with their latest partnership with M.Y Safra Bank and described it as “another step forward” in their mission to provide our clients with the best place to trade cryptoassets.
Insurance for Crypto Firms
While SFOX’s latest milestone marks the first U.S FDIC insurance policy for a crypto firm, Coinfomania has in the past reported other efforts to provide industry participants with regulated insurance.
For instance, Lloyds of London, one of the world’s oldest insurance firms in August, secretly created an insurance coverage for a crypto firm (Kingdom Trust) to protect their digital assets from future theft.
Lloyds in February also extended their insurance policy to another crypto startup, BitGo.