Assets on Outlet are protected. We provide coverage, which is different from insurance. Since we are not a bank, we are not FDIC insured, but have the best available coverage on the assets deposited through Outlet. You can read below for more information on how your funds are protected while using Outlet. Outlet uses many partners, one of them is a custody partner called FireBlocks. This means that Outlet does not directly hold your funds, these funds are instead held by our custody partner. Our custody partner provides SOC II type 2 security. The coverage that we have on Outlet is the best coverage available for your digital assets.
At Outlet the most important thing is protecting your assets. We protect and guard your assets from theft while funds are in custody, as well as when funds are in transit.
We have a direct partnership with one of our lending partners to make Outlet as safe as possible from hacks. Our custody solution partner is SOC II type 2 approved. This is a great article that goes into detail about how strict, and what the SOC verification process is like. Stock markets, exchanges and other regulated entities have similar SOC requirements that must be met in order to operate.
Funds are stored by Fireblocks which also protects you against Outlet going out of business, shutting down, or disappearing with your funds.