Well there's still gemini dollar, which apparently is also FDIC insured.
> FDIC insurance applies only to the USD reserve funds. GUSD exist as ERC-20 tokens on the Ethereum blockchain; tokens are under the user’s self-custody, and are not insured through Gemini.
And if Gemini itself isn't trustworthy, FDIC does absolutely nothing. FDIC insures Gemini's bank's failure, not Gemini's failure. Gemini is not a bank.
According to the gemini dollar site, it's insured for $250k per account, not for all the accounts combined.
If you "lose your keys" to your account, you lose your account, as is standard in crypto; no KYC backup/protection.
In the middle you have "what if Gemini the business shuts down anyway, and stops letting you redeem GUSD for USD? You can sue, but legal expenses might eat away a lot of the value.
> ¹ FDIC insurance applies only to the USD reserve funds. GUSD exist as ERC-20 tokens on the Ethereum blockchain; tokens are under the user’s self-custody, and are not insured through Gemini.
So if you send them USD, they'll hold your USD in an FDIC insured account. If you hold GUSD, and it turns out GUSD is a fraud or is otherwise insolvent, your SOL.