Bank Ends Bitcoin Services Agreement

Federal Deposit Insurance Corporation
Division of Risk Management Supervision
Division of Depositor and Consumer Protection
Chicago Regional Office
300 South Riverside Plaza, Suite 1700
Chicago, IL 60606
Telephone: (312) 382-7500

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August 16, 2023

Board of Directors
XXXXX XXXXX XXXXX

Members of the Board:

We have reviewed your correspondence, dated May 30, 2023, and the subsequent information provided on July 17, 2023. The correspondence addresses the bank’s plan to terminate and unwind its agreement with XXXXX to offer its retail deposit customers the ability to buy, sell, and hold Bitcoin through the bank’s mobile banking platform provided by XXXXX.

The correspondence contained the bank’s termination agreement with XXXXX and the XXXXX Financial Bank Wind Down Plan, which indicates a 90-day liquidation period after notifications are sent to customers. In addition, the correspondence contained the proposed notification to customers regarding the termination of the bank’s agreement with XXXXX and key facts regarding the closure of their accounts with XXXXX.

Please maintain all records related to the wind down of the relationship with XXXXX, including key termination benchmarks, account closure data, training and general talking points provided to the marketing department, and customer complaints and questions. The full implementation of the bank’s termination plan, as well as an assessment of whether the Matter Requiring Board Attention included in the April 25, 2022 Report of Examination has been resolved, will be evaluated at the bank’s upcoming Safety and Soundness examination, scheduled for the 4th quarter of 2023.

If you have any questions contact FDIC Case Manager XXXXX or XXXXX.

Sincerely,
Gregory P. Bottone
Regional Director
Federal Deposit Insurance Corporation

cc: XXXXX XXXXX XXXXX