We have been working on this one for a bit. So today, I am proud to announce that you now have the option to open FDIC insured accounts through Synapse.
How we managed to achieve FDIC insurance is fairly straight forward. We had to demonstrate that all Synapse accounts are as good as standard bank accounts.
In order to accomplish this goal, we started building out tools for automating and simplifying account creation and management processes at the bank level.
Today, Synapse can create accounts with the level of compliance a bank requires in a matter of seconds. Once the accounts are created, our software tools constantly help banks monitor and update KYC for users. This means Synapse can be used as a specialized core banking system, and thus accounts inside the Synapse software can be considered as good as standard bank accounts.
Understanding the insurance
Every customer gets FDIC insured up to a balance of $250,000. But remember, creating multiple Synapse accounts will not increase your FDIC insurance. All the account balances will be tallied up and all of them will be insured together by FDIC for up to $250,000.
There are multiple ways to use this feature. For existing gateways, they can now tout the fact that all funds held within the system are now FDIC insured. This is crucial for companies working on savings, crowdfunding or escrow applications.
That’s it for now. We will be announcing some more cool updates in the coming weeks. If you have any questions about this feel free to reach out to us at firstname.lastname@example.org or start a discussion on our discuss page.