Bank Halts Bitcoin Service Exploration

FDIC
Federal Deposit Insurance Corporation
15 Braintree Hill Office Park, Braintree, MA 02184-8701
Boston Area Office

January 5, 2023

Board of Directors
XXXXX

Subject: Acknowledgement of the Notification and Subsequent Suspension of Exploratory Process Regarding Crypto-Related Activities

Dear Members of the Board:

The FDIC acknowledges the notification provided by XXXXX (the Bank) on September 12, 2022, regarding the Bank’s intent to explore the offering of bitcoin services to customers through third parties. 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. The FDIC acknowledged the Bank’s notification and requested additional information regarding the proposed activity in a letter dated November 1, 2022.

By subsequent letter dated November 15, 2022, President and Chief Executive Officer XXXXX stated that the Bank has suspended the exploratory phase for new bitcoin services offered to XXXXX customers in conjunction with XXXXX and certain of its affiliates, and technology providers XXXXX also stated that if the Bank decides to restart the exploratory process, the FDIC and XXXXX will be notified. At that time, the Bank will provide, when readily available, all requested documents outlined in the FDIC’s November 1, 2022 letter. The FDIC acknowledges the Bank’s updated status related to this activity. We request that the Bank notify this office if the status of this activity, or other crypto-related activity, changes in the future.

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 XXXXX at XXXXX or Review Examiner XXXXX at XXXXX. Written correspondence should be addressed to my attention at the New York

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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,
Frank R. Hughes
Regional Director

cc: [XXXXXXXX]