Response to Bank's Crypto Services Notification

FDIC
Federal Deposit Insurance Corporation
Division of Risk Management Supervision
Division of Depositor and Consumer Protection
600 North Pearl Street, Suite 700, Dallas, Texas 75201

Dallas Regional Office
Phone (214) 754-0098
Fax (972) 761-2082

August 8, 2022

Board of Directors
XXXXX XXXXX XXXXX

Subject: Third-Party Crypto-Asset Activity

Dear Members of the Board:

On February 22, 2022, we received XXXXX XXXXX (the Bank) notification of the Bank’s intent to offer customers the ability to buy, sell, and hold Bitcoin and Ethereum through the Bank’s digital and mobile banking platforms in conjunction with XXXXX in response to Financial Institution Letter (FIL), FIL-16-2022, Notification of Engaging in Crypto-Related Activities. FIL-16-2022 requested that all FDIC-supervised institutions that intend to engage in, or that are currently engaged in, any activities involving or related to crypto-assets (also referred to as “digital assets”) promptly notify the appropriate FDIC Regional Director.

As stated in FIL-16-2022, the FDIC may request that institutions provide information necessary to allow the FDIC to assess the safety and soundness, consumer protection, and financial stability implications of such activities. In order to begin those assessments, please provide the information in the attached list by October 3, 2022. If the requested information has not yet been developed, include the status and timeline for developing each item in the response, as applicable. Once the FDIC has completed its review of the above-requested information, we will determine whether additional information is necessary to complete the review of the activity. When we have completed our review, the FDIC will provide the institution with relevant supervisory feedback, as appropriate.

If you have any questions, please contact Case Manager XXXXX XXXXX XXXXX or Review Examiner XXXXX XXXXX XXXXX. Written correspondence should be addressed to Regional Director Kristie Elmquist at the Dallas Regional Office, and sent as a PDF document through the FDIC’s Secure Email portal (securemail.fdic.gov) using the following e-mail address: XXXXX@FDIC.gov.

Sincerely,

Signed by Joseph A. Meade

Joseph A. Meade
Assistant Regional Director

Enclosure
cc: XXXXX XXXXX XXXXX