4 ms·
The way FDIC insurance works is that each account is insured for 250k. If the dollars are held in an omnibus account on behalf of GUSD holders, and the bank hol
by kenneth 5y ago
The way FDIC insurance works is that each account is insured for 250k. If the dollars are held in an omnibus account on behalf of GUSD holders, and the bank holding it were to go bust, Gemini could distribute $250k pro-rata to the billions of dollars of GUSD liabilities. Not particularly useful.
And if Gemini itself isn't trustworthy, FDIC does absolutely nothing. FDIC insures Gemini's bank's failure, not Gemini's failure. Gemini is not a bank.
- gruez 5y ago>and the bank holding it were to go bust, Gemini could distribute $250k pro-rata to the billions of dollars of GUSD liabilities. Not particularly useful. According to the gemini dollar site, it's insured for $250k per account, not for all the accounts combined.
- mring33621 5y agoWe're all good then! The company's website says so!