FDIC Requests Crypto Activity Documentation

FDIC
Federal Deposit Insurance Corporation
Division of Risk Management Supervision
Division of Depositor and Consumer Protection
300 South Riverside Plaza, Suite 1700, Chicago, IL 60606

Chicago Regional Office
Phone (312) 382-7500
Fax (312) 382-6901

December 13, 2022

Board of Directors
XXXXX
XXXXX

Subject: Notification of Engagement in Crypto-Related Activities

Dear Members of the Board:

The FDIC acknowledges the notification provided by XXXXX (the Bank) on September 28, 2022, regarding the Bank’s intent to partner with the XXXXX to offer XXXXX and XXXXX which use blockchain technology. The notification was provided pursuant 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.

While the notification provides a summary of the proposed activities, implementation timeline, risk management program, and vendor due diligence process, the FDIC will need additional documentation to evaluate the safety and soundness, consumer protection, and financial stability considerations of the proposed activities. Enclosed is a request for additional information that we need to fully review the proposed activities and provide appropriate supervisory feedback to the bank. Please respond to the request no later than January 31, 2023.

This letter is confidential and may not be disclosed or made public in any manner under part 309 of the FDIC Rules and Regulations (12 CFR part 309). If you have any questions, please contact Case Manager XXXXX or Senior Review Examiner XXXXX. Written correspondence should be addressed to my attention at the Chicago 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,
Gregory P. Bottone
Regional Director

cc: XXXXX