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Your Funds, Safeguarded
Covercy works only with licensed, regulated institutions — our own regulated affiliates alongside partner banks and electronic money institutions. Whether your capital is held in a US bank account or moving across borders to fund a deal or pay a distribution, it is always handled by a licensed, regulated entity.
The information on this page is general and provided for transparency. The specific agreements you enter into with Covercy and its partners govern your relationship and take precedence over anything described here. The institutions, services, and terms that apply to you may vary by product, location, and customer.
How Your Funds Are Held — US Banking
Covercy One lets you open and manage US bank accounts for your funds, SPVs, and properties directly from the platform. These accounts are provided by our banking partner and protected by FDIC insurance.
Covercy is a financial technology company and is not an FDIC-insured bank. Banking services provided by Thread Bank, Member FDIC. FDIC deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. The Covercy Visa debit card is issued by Thread Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used anywhere Visa cards are accepted.
Your deposits qualify for up to $3,000,000 in FDIC insurance coverage when Thread Bank places them at program banks in its deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at thread.bank/sweep-disclosure and a list of program banks at thread.bank/program-banks. Please contact customerservice@thread.bank with questions on the sweep program. Pass-through insurance coverage is subject to conditions.
How Your Funds Move — Payments
The same regulated payment rails power Covercy One throughout the investment lifecycle: collecting capital-call and fundraising contributions from your investors, and paying distributions back to them. They also handle standalone cross-border and cross-currency transfers. In every case, funds are moved by a licensed, regulated institution.
Depending on your location, your payment services are provided through one of our regulated affiliates:
- United Kingdom & related services: our affiliate Covercy Europe Ltd.
- Israel: our affiliate Covercy Technological Trading Ltd.
The institution that processes your transaction is determined by your location:
United States
Payments for Covercy Europe Ltd are processed by Visa Global Services Inc. (VGSI). For certain customers, services are provided in the United States under sponsorship by Community Federal Savings Bank, to which The Currency Cloud Limited is a service provider.
European Economic Area
Payment and e-money services are provided by CurrencyCloud B.V.
United Kingdom & Rest of World
Payment and e-money services are provided by The Currency Cloud Limited.
Israel
Payment services are provided by our affiliate Covercy Technological Trading Ltd.
Where an Electronic Money Institution receives your funds, e-money is issued in exchange and your funds are safeguarded in line with regulatory requirements — held at a reputable credit institution and protected for you in the event of the institution's or our insolvency. Safeguarding ends once the money has been paid out to your beneficiary.
Our Affiliates
Covercy Europe Ltd
Regulated by the UK Financial Conduct Authority (FCA) as an "Authorised Payment Institution", FCA Firm Reference: 675000.
Covercy Technological Trading Ltd
Permitted by the Israel Capital Markets, Insurance and Savings Authority to provide "Financial Services in an Extended Scope", Company Number: 515200657.
Our Banking & Payment Partners
Thread Bank
Member FDIC. Provides US banking services and issues the Covercy Visa debit card pursuant to a license from Visa U.S.A. Inc.
Visa Global Services Inc. (VGSI)
A licensed money transmitter (NMLS ID: 181032), licensed as a money transmitter by the New York Department of Financial Services. VGSI is also a registered Money Services Business (MSB) with FinCEN and a registered Foreign MSB with FINTRAC.
CurrencyCloud B.V.
Licensed and regulated by De Nederlandsche Bank as an Electronic Money Institution (Relation Number: R142701).
The Currency Cloud Limited
Regulated by the UK Financial Conduct Authority (FCA) as an "Authorised Electronic Money Institution", FCA Firm Reference: 900199.
Community Federal Savings Bank
For certain customers, US services are provided under sponsorship by Community Federal Savings Bank, to which The Currency Cloud Limited is a service provider.
Security & Trust
Protecting your data is as important to us as protecting your funds.
Covercy maintains SOC 2 compliance, independently audited against rigorous controls for the security and confidentiality of customer data.
Customer funds are held in accounts separate from Covercy's own operating funds and are never commingled, so another party's activity cannot introduce risk to you or your investors.