Critical Step For The Crypto Industry! Is Insurance Coming to Cryptocurrencies?

Banking firm LevelField has approached its goal of offering both traditional and crypto banking services after acquiring FDIC-insured Burling Bank.

Banking Startup LevelField Aims To Be The First FDIC Insured Institution To Offer Cryptocurrency Services

Banking startup LevelField announced Wednesday that it is poised to become the first FDIC-insured bank to offer digital asset services after its acquisition of Burling Bank.

The full-service bank plans to offer its customers a range of traditional banking services as well as cryptocurrency-related services.

According to the company’s press release, the acquisition is expected to be completed towards the end of this year and the transaction requires regulatory approval. Financial terms of the deal were not disclosed.

While LevelField is the first FDIC-insured bank to offer crypto services, that doesn’t necessarily mean the bank will offer a safer way to invest in volatile digital assets.

FDIC insurance protects bank depositors against losses of up to $250,000 in the event of a bank going bankrupt, but cryptocurrencies are an asset class that is not insured by the Federal Deposit Insurance Corporation.

Burling Bank’s senior management team will remain with the bank as part of the acquisition. The senior team will work with LevelField’s existing team to expand the bank’s business nationwide.

LevelField’s foray into crypto follows the increasing adoption of crypto by traditional finance companies. Bank of America, Goldman Sachs, and USAA have embraced cryptocurrencies to varying degrees in recent years.

*Not investment advice.

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