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Bank Halts Crypto Activities

Board of Directors
XXXXX

Dear Members of the Board:

In November 2021, XXXXX (Bank) management discussed the Bank’s proposed engagement in activity with XXXXX with FDIC field and regional office staff. XXXXX offered digital XXXXX which was a XXXXX XXXXX using blockchain technology. XXXXX maintained a deposit account at the Bank to hold a portion of the U.S. dollars exchanged for digital XXXXX. During the July 5, 2022, FDIC examination, the FDIC requested information necessary to allow the FDIC to assess the safety and soundness, consumer protection, and financial stability implications of the activity. Subsequently, in an email dated November 22, 2022, Executive Vice President Chief Risk Officer XXXXX stated that the Bank is no longer engaging in digital-based activity with XXXXX which ceased offering digital XXXXX in XXXXX. 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. Please refer to Financial Institution Letter (FIL), FIL-16-2022 Notification of Engaging in Crypto-Related Activities which requests 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. Written correspondence should be addressed to my attention 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.

XXXXX

  • 2 - January 17, 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 at XXXXX or XXXXX or Review Examiner XXXXX at XXXXX or XXXXX.

Sincerely,

Frank R. Hughes
Regional Director

cc: XXXXX
Federal Reserve Bank of Boston