Prime Trust is not an insured depository institution or bank. Digital assets are not legal tender, are not insured by the Federal Deposit Insurance Corporation (“FDIC”), and are not subject to protections afforded to bank deposits. Digital assets are subject to extreme price volatility and may lose value.
Prime Trust maintains one or more deposit accounts at banks for the benefit of customers that maintain fiat currency balances. Deposit accounts can be dedicated custodial accounts for the benefit of a single customer or custodial accounts that hold commingled funds in proportion to the fiat currency contributed by each account holder recorded on our ledger in a manner consistent with 12 CFR 330.5(a)(2). Prime Trust maintains deposit accounts at the following FDIC-insured banks: BMO Harris Bank, Cross River, Lexicon Bank, Signature Bank and MVB Bank.
For questions related to Signature Bank, please refer to the FDIC's statements (Release A and Release B).
Fiat funds held on deposit in custodial accounts at insured banks may be eligible for FDIC “pass-through” deposit insurance up to a maximum deposit amount of $250,000 per customer if certain criteria are met. If an insured bank fails while it is holding the account where your funds are held, you may be eligible for deposit insurance coverage by the FDIC pursuant to 12 CFR 330.5 and 12 CFR 330.7. A customer’s insured interest in a custodial account that holds commingled funds is equal to the amount of fiat currency held on deposit for that customer.
FDIC deposit insurance covers deposit products offered by insured banks. Deposit insurance does not apply to non-deposit products, such as digital assets. FDIC deposit insurance does not protect you against the failure of Prime Trust or losses resulting from unauthorized access to the digital assets in your account. For more information, visit https://www.fdic.gov/news/fact-sheets/crypto-fact-sheet-7-28-22.pdf.
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