Bank's Blockchain Network Concerns

Board of Directors
XXXXX
XXXXX

Via secure email

Subject: Activity Related to XXXXX

Members of the Board:

On XXXXX, XXXXX announced its membership in the XXXXX XXXXX. In response to launching the XXXXX, General Counsel XXXXX participated in a February 22, 2022 conference call with management from the FDIC, the Board of Governors of the Federal Reserve System, and the Office of Comptroller of the Currency, along with leadership of the other XXXXX. From this meeting, Federal regulators understand the XXXXX is currently drafting operating rules to govern transactions on the XXXXX blockchain network.

Please be advised that the FDIC has a number of questions and concerns based on the information provided to date. We expect you to address those (in advance of implementation) to ensure the bank is operating in a safe and sound manner. [^1]

To assist the FDIC and other Federal regulators in the XXXXX review process, we will be submitting under separate cover (i) the questions regarding the XXXXX that have not yet been satisfactorily addressed and (ii) additional questions and document requests that will need to be addressed.

Written correspondence should be addressed to Kristie K. Elmquist, Regional Director, FDIC, Dallas Regional Office, and sent as a PDF document through the FDIC’s Secure Email portal (https://securemail.fdic.gov/) using the following e-mail address: XXXXX@FDIC.gov. Information about how to use secure email and FAQs about the service can be found at https://www.fdic.gov/secureemail/.

Sincerely,

Kristie K. Elmquist
Regional Director

[^1]: See e.g., Section 39 of the Federal Deposit Insurance Act and Part 364 of the FDIC Rules and Regulations.