Wild Crypto Market’s Traders Get Something New: FDIC Protection

The Wild West of cryptocurrency trading is getting something typically associated with the safest of savings accounts: FDIC protection.

SFOX, a prime dealer and trading system in the $208 billion crypto market, is partnering with New York-based M.Y. Safra Bank to offer its traders deposit accounts backed by the Federal Deposit Insurance Corp.—the same federal agency that protects bank customers up to $250,000 per financial institution.

It’s the first time FDIC-insured accounts will be linked to a crypto prime dealer, according to SFOX, and allows traders to keep funds in accounts under their own names. Most banks don’t allow their ...