Security

Holdings in the Fidelity Crypto^® account are stored securely by Fidelity Digital Assets^℠.  Fidelity Digital Assets^℠ manages omnibus wallets with client assets segregated at the books and records level. Fidelity Digital Assets^℠ maintains both online wallets as well as various offline wallets. The proprietary design of the various offline wallets allows for risk segmentation with varying service level standards, geographic dispersion, and number of associates required to initiate transactions; with most assets held in cold storage. Additionally, multiple sets of controls and procedures are in place to prevent unauthorized access to your crypto.

Our Customer Protection Guarantee aims to give you even greater peace of mind when doing business with us by reimbursing losses that arise from unauthorized access to your covered accounts. Review the full Customer Protection Guarantee for more details.

Your digital assets are not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC). Investors in crypto do not benefit from the same regulatory protections available for registered securities.

Access the Fidelity Crypto® Customer Agreement or the Fidelity Crypto^® for Wealth Managers Customer Agreement through the Fidelity Crypto Agreements & Disclosures in your account profile on the Fidelity Investments^® app and at the bottom of the account page on Fidelity.com.

All crypto assets held by Fidelity Crypto^® are custodied with Fidelity Digital Assets^℠. We hold nearly all of customers’ assets offline in secure cold storage. A small portion of assets are kept online in hot wallets to facilitate timely processing. Fidelity Digital Assets^℠ does not lend or otherwise encumber a customer’s crypto assets without customer consent or engage in any proprietary activities with customer crypto assets.

For security reasons we do not share this information but can confirm that Fidelity Digital Assets℠ handles customer crypto assets as just that, customer assets. Fidelity Digital Assets℠ maintains exclusive custody of customer digital assets which are not held on any third-party custodian or exchange. As part of normal procedure, Fidelity Digital Assets℠ undergoes daily reconciliations to ensure our books and records match what customer assets we manage. These reconciliations are supervised by multiple teams and parties, along with there being multiple controls in place to ensure completeness and accuracy.

Fidelity Digital Assets℠ is not permitted to lend or otherwise encumber a customer’s crypto assets without customer consent, meaning customer assets remain completely in custody.

The Fidelity Crypto^® customer agreement provides that the digital assets held in custody by Fidelity Digital Assets^℠ are owned by its clients and that Fidelity Digital Assets^℠ is not permitted to lend or otherwise encumber a customer’s crypto assets without customer consent. Furthermore, Fidelity Digital Assets^℠ does not engage in any proprietary activities with customers' crypto assets.

You can choose to add 2-factor authentication, by text, call, or VIP Access. This is an extra layer of security on your Fidelity Crypto^® account to prevent someone from logging in, even if they have your password. It is recommended that you increase the security of your account whenever possible.

Yes, any cash balances and other deposits maintained at the cash depository in the same legal ownership capacity will be eligible for FDIC insurance up to the applicable FDIC insurance limits. This will include any deposits that you make directly at the cash depository or that you make through Fidelity Digital Assets℠ or other third parties. The cash depository is Citibank, N.A. FDIC insurance protects against loss in the event of a failure of the cash depository; it does not protect you against loss in the event of a failure of Fidelity Digital Assets℠.

Federal deposit insurance protects your deposits at Federal Deposit Insurance Corporation (FDIC)-insured depository institutions in case the depository institution fails. All deposits you hold at such an institution in the same legal ownership capacity, whether directly or indirectly through an intermediary like Fidelity Digital Assets℠, are insured up to limits set by the FDIC.

Ownership capacity refers to who owns the account and whether that person is the sole owner of the account (single ownership), owns the account together with one or more other persons (joint account), or owns the account through other legally recognized vehicles such as a trust or employee benefit plan. For example, if you are the only individual listed on an account as the owner, this is single ownership and the account would be insured, together with all other single ownership accounts you have at the same institution, up to the FDIC's standard maximum deposit insurance amount, currently $250,000. If you own an account with other individuals, this is referred to as joint ownership. Each individual’s share of the joint account is insured up to $250,000 together with their other interests in joint accounts at the same institution.

If you have more than $250,000 of deposits held in the same ownership capacity at a cash depository and the  cash depository fails, only the amount up to $250,000 will be protected by Federal deposit insurance. The remainder will be treated by the FDIC as a claim on the assets of the failed institution.

Fidelity Digital Assets℠ does not monitor the amount of your cash balance to determine whether it exceeds the limit of available FDIC insurance. Fidelity Digital Assets℠ also does not know if you have other deposits at the same cash depository. You must monitor the total amount of all your deposits at each cash depository held in the same ownership capacity, including your cash balance. If you think you will exceed the $250,000 limit, you should consider other options for amounts above $250,000 to reduce your risk. Fidelity Digital Assets℠ is not responsible for any insured or uninsured portion of your cash balance.

If payments become necessary, you will receive the amount of principal that the FDIC determines is protected by Federal deposit insurance. This means that you will receive what you have deposited and any applicable earned interest up to the applicable FDIC insurance limit. FDIC will make these payments to you.

There is no specific time period during which the FDIC must make insurance payments available to you and there may be a significant delay in accessing your Cash Balance if it becomes necessary for the FDIC to make payments. You may be required to provide certain documentation to the FDIC and Fidelity Digital Assets℠ before insurance payments are made.

For more information about Federal deposit insurance, visit fdic.gov, or call 877-ASK-FDIC (877-275-3342).