Bank Halts Blockchain Payment Program

FDIC
Federal Deposit Insurance Corporation
Division of Risk Management Supervision
15 Braintree Hill Office Park, Braintree, MA 02184-8701

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Board of Directors
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Subject: Engagement in Crypto-Related Activities

Dear Members of the Board:

The FDIC and XXXXX acknowledges the notification provided by XXXXX [Bank] dated April 20, 2022, regarding the Bank’s engagement in activity with XXXXX, which offered a payment program at XXXXX using blockchain technology. XXXXX maintained a deposit account at the Bank to hold a portion of the U.S. dollars exchanged for XXXXX. 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 FIL also encourages institutions to notify their state regulator.

In an email dated December 9, 2022, Senior Vice President XXXXX provided an update on the relationship and noted the Bank is no longer engaging in the activity outlined in the Bank’s notification. The FDIC acknowledges the Bank’s updated status related to this activity. We request that the Bank notify the FDIC and Division if the status of this activity, or other crypto-related activity, changes in the future. Written correspondence to the FDIC should be addressed to Frank Hughes at the New York 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.

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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). XXXXX XXXXX XXXXX. If you have any questions, please contact FDIC Case Manager XXXXX at XXXXX or XXXXX, or Review Examiner XXXXX at XXXXX or XXXXX.

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REL0000042477.0002

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| -2- January X, 2023

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Sincerely,
Frank R. Hughes
Regional Director

cc: Federal Reserve Bank of Boston