Bank's Crypto Activities Evaluation
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
May 25, 2023
Board of Directors
XXXXX
Subject: Additional Request for Information on XXXXX Implementation
Members of the Board:
On September 28, 2022, the FDIC received notification of the bank’s intent to partner with the XXXXX to offer XXXXX and XXXXX to bank customers. The notification was provided pursuant to Financial Institution Letter (FIL)-16-2022, Notification of Engaging in Crypto-Related Activities. The FDIC received additional information from the bank on January 31, 2023, in response to our December 13, 2022 letter.
FDIC staff has reviewed the documents provided and determined that additional information is necessary to further evaluate the proposed activities. On March 21, 2023, the bank notified the FDIC of its intent to no longer proceed with XXXXX. As a result, FDIC staff will focus the review on the bank’s implementation of XXXXX.
Enclosed is a request for the additional information needed to continue the review of the proposed activities and provide appropriate feedback to the bank. A number of items previously requested were not provided in the bank’s recent submission. Please follow up with the FDIC for any clarification that may assist the bank in responding to the requested items. Please provide the requested information no later than July 10, 2023.
The FDIC’s February 17, 2023 letter requested that the bank not proceed with the planned activity until the FDIC completes its review and provides relevant supervisory feedback. Please notify us if there are any material changes in the planned service, the status of this project, or its planned implementation, as additional information may be requested to allow the FDIC to assess the safety and soundness, consumer protection, and financial stability implications.
This letter is confidential and may not be disclosed or made public in any manner under part 309 of the FDIC Rules and Regulations.
Board of Directors
XXXXXXXXXXXXXXXXXXXXXX
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May 25, 2023
If you have any questions, please contact Case Manager XXXXXXXX
or XXXXXXXX or Senior Review Examiner XXXXXXXX or XXXXXXXX
Sincerely,
Gregory P. Bottone
Regional Director
Enclosure
cc: XXXXXXXXXXXXXXXXXXXXXX
Federal Reserve Bank of Chicago