Your funds are separated and secured at all times
At Bitstack, your money is ring-fenced in a safeguarding account, as required by regulation. This account is held at BPCE by Xpollens, the licensed payment institution you are a client of. Your funds are kept separately from the company's and the bank's own funds. They cannot be used, invested, or mixed with other funds at any time.
What is a safeguarding account?
A safeguarding account is a bank account used solely to hold client deposits.
Payment institutions like Xpollens are legally required to maintain one. This mechanism ensures that your money remains identifiable and separate at all times.
What happens in the event of insolvency?
If Xpollens were to become insolvent, your deposits would remain protected, as they are held separately from its own funds.
If BPCE, the bank holding the safeguarding account, were to fail, your deposits would be covered up to €100,000 through the Fonds de Garantie des Dépôts et de Résolution (FGDR) — the French deposit guarantee scheme.
The FGDR is a French regulatory scheme that protects depositors in the event of a bank failure.
In summary
Bitstack acts as an agent of Xpollens, a licensed payment institution.
Your euro deposits are held in a safeguarding account opened by Xpollens at BPCE.
Your funds are separated and protected at all times, even in the event of a failure by one of the parties involved.
In the event of bank insolvency, the FGDR covers you up to €100,000.