FDIC Coverage: Scope and Limits
FDIC insures deposits up to defined limits at insured institutions. It does not insure token balances, payment fees, or investment losses.
Stablecoin Reserves: Assets and Disclosures
Safety depends on asset quality, duration, and transparency. Short-duration, high-quality reserves with daily disclosures improve confidence.
Redemption Mechanics and Stress Scenarios
Robust redemption partners and clear policies reduce run risk. Duration mismatch increases stress vulnerability.
Comparisons: When Each Is Safer
FDIC is safer for small insured deposits; high-quality token reserves can be operationally superior for fast settlement and treasury needs.
Practical Guidance for Users
- Check FDIC status and coverage limits
- Verify issuer disclosures, audits, and reserve composition
- Understand redemption mechanisms and partner banks
Conclusion
Safety is contextual. Combine FDIC-insured accounts with transparent token reserves to optimize both protection and operational efficiency.