Bank Halts Crypto Services Plan

Board of Directors

XXXXX

Subject: Response to Notification of Engagement in Crypto-Related Activities

Dear Members of the Board:

The FDIC acknowledges the notification provided by XXXXX (the Bank) on November 28, 2022, of the Bank’s intent to offer customers the ability to buy, sell, and hold crypto-assets through the Bank’s mobile banking platform in conjunction with 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. On January 24, 2023, the FDIC sent a letter to the Board requesting information necessary to allow the FDIC to assess the safety and soundness, consumer protection, and financial stability implications of the proposed activities.

In his January 26, 2023 letter, President and Chief Executive Officer XXXXX advised the FDIC that the Bank has put its digital assets project on hold until further notice. The FDIC acknowledges the Bank’s updated status related to this activity. As a result of the Bank’s January 26, 2023 communication to the FDIC, the Bank no longer needs to respond to the FDIC’s January 24, 2023 letter to the Board and accompanying information request. We request that the Bank notify this office if the status of this activity, or other crypto-related activity, changes in the future.

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. Information about how to use secure email and FAQs about the service can be found at https://www.fdic.gov/secureemail/.

This letter is confidential and may not be disclosed or made public in any manner under part 309 of the FDIC Rules and XXXXX (12 CFR part 309). If you have any questions, please contact Case Manager XXXXX XXXXX or Review Examiner XXXXX.

Sincerely,

Frank R. Hughes
Regional Director

cc: XXXXX

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