Newsroom
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3 mins read
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January 23, 2023
Everything you need to know about claiming FDIC Insurance
This information is purely for educational purpose with actionable steps in the unlikely event of the banking partner’s failure. Our banking partner Evolve Bank and Trust has no solvency issues whatsoever.
Juno does not custody cash deposits. All cash deposits are held with our partner bank and FDIC-Insured up to $250,000. Since FDIC insurance was created, no depositor has lost a single dollar of insured funds due to bank failure.
Therefore, in the unlikely event of our partner bank’s failure, all Juno account holders can claim cash deposits by following official procedures set by the Federal Deposit Insurance Corporation (FDIC).
Juno is a crypto-native digital banking platform. Juno, on its own, does not have custody of customers' cash and works with a banking partner to facilitate all banking services. Juno's current banking partner is Evolve Bank & Trust, a licensed US-based bank which provides these banking services.
Primarily with this partnership, we have enabled a US checking account facility for all US users who open accounts via Juno. In addition, our banking partner is an FDIC (Federal Deposit Insurance Corporation) member, and every individual user's cash deposits are insured up to $250,000.
FDIC is an independent agency set up by Congress under the Banking Act of 1933 to restore trust in the American financial system after the collapse of many banks during the Great Depression.
Since FDIC insurance began, no depositor has lost a single dollar of insured funds due to bank failure. And there have been many bank failures; here is the list of failed banks on their official website since October 2000.
Juno's USD deposits are also applicable under FDIC insurance up to $250,000 via our banking partner, Evolve Bank & Trust. In the unlikely event of our partner bank’s failure, Juno account holders will be able to claim their cash deposits.
Here is the detailed step-by-step process to claim FDIC insurance in case of bank failure.
The process for claiming FDIC insurance in case of a bank failure has generally remained the same. Still, it may vary depending on the bank's circumstances and customers' account types and balances.
Most importantly, the priority of claims is given first to all depositors, then to debtors, stockholders, etc. Historically all depositor claims for bank failures filed under FDIC insurance have been issued. It is also important to note that the FDIC insurance coverage limit is $250,000 per depositor per FDIC-insured bank, so any deposits above that amount may not be insured. Hence, we recommend Juno account holders only make cash deposits up to $250,000.
Juno is also in the process of building a modular banking stack, similar to our new modular crypto stack. This will allow us to work with multiple banks simultaneously to offer higher FDIC insurance, derisk the platform further, and ensure the continuity of banking operations while safeguarding customers’ cash deposits.
PS: Our current banking partner is completely solvent. The information above is purely for educational purposes, with actionable steps in the unlikely event of a banking partner’s failure.
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Juno (CapitalJ Inc.) is a financial technology company, not a bank. Banking services provided by Evolve Bank and Trust, Members FDIC. The Juno card is issued by Evolve Bank and Trust, Member FDIC, pursuant to license by Mastercard International.
Digital Assets are highly speculative in nature, involve a high degree of risk and can rapidly and significantly decrease in value. It is reasonably possible for the value of Digital Assets to decrease to zero or near zero.
Digital Assets held in your Juno Account are not protected by FDIC insurance or any other government-backed or third party insurance.
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