FDIC insurance

FDIC insurance is the US scheme that makes a failing bank’s depositors whole, up to $250,000 per depositor. It’s a guarantee on dollars held at an insured bank — not on crypto, and not on a card balance just because a card is involved.

Why it matters: “Member FDIC” usually means the issuing bank is insured for its dollar accounts — not that your crypto, your stablecoins, or your spendable card balance are covered. If a crypto platform holds your funds and isn’t a bank, FDIC insurance simply doesn’t apply, so a custodial balance can be at risk if the platform fails. This is one reason self-custody appeals: you’re not relying on cover you may not actually have.

For example: Coinbase’s US debit card is issued by Pathward, N.A., “Member FDIC” — but that covers the bank’s deposit accounts, not the crypto you spend. ether.fi Cash is issued by Third National, a money transmitter, not a chartered bank, and claims no FDIC insurance; the Nexo Card’s balances aren’t deposit-insured either. As of June 2026.