According to the FDIC, 136 insured banks in the U.S. are involved in crypto-assets or are planning some kind of activity. This includes enabling customers to buy or sell cryptocurrencies or providing services to crypto asset exchanges such as bank deposits, custody or lending.
Last week the FDIC’s Office of the Inspector General (OIG) released its annual report on the key challenges facing the FDIC. Supervising the risks posed by digital assets is one of nine concerns.
It highlighted the digital asset volatility risk, citing Silvergate as an example. About 90 percent of its deposit base related to digital asset customers, and there was a drawdown from around $11.9 billion in deposits to $3.8 billion within a quarter. “The bank sold $5.2 billion in debt securities at a loss of $718 million, which is greater than the bank’s total profits since about 2013,” said the report.
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