Voyager always boasted that USD deposits are FDIC insured. I did not have any deposits with Voyager but today I learnt that FDIC insurance is only applicable if the underlying bank fails and does not cover if Voyager itself fails. What this makes me wonder is that are other neobanks such as Wealthfront, betterment, Sofi etc have same clause?
Your account is with the underlying bank and if the voyager fails you get just hosed at the bank. Thanks for reminding me of the 250k limit. Gotta move money now
This is correct. I saw this when my buddy recommended some crypto staking. Crypto companies are NOT FDIC protected. Their underlying USD assets are, meaning I’d the bank their USD is in fails, it is protected. But not the crypto bank itself.
I am not concerned about Voyager. I do not have deposits with them. I am concerned about neobanks such as Wealthfront etc.
For WealthFront, they are insured by FDIC for cash that has settled. Otherwise, if it’s in a brokerage account, it’s covered by SIPC
Op, why do you sound like broken record. Don’t you get it ..
Sofi has real proper banking license not a shell/neo bank.
Wealthfront and Betterment are HEAVILY regulated by FINRA and SEC. Voyager not ! So in broker dealers in the US, clients funds are fully segregated from firm funds. Accounts at custodians, including cash accounts, are fully separated for the benefits of clients. That was created exactly for the purpose that if the firm fails, the client funds are protected.
One more comment: wealthfront was bought by UBS.
Yes now Wealthfront is backed up by UBS, so no issues all together.
Wtfff, can anyone confirm?