Deposit accounts are held at Cross River Bank, Member FDIC, and insured up to $250,000. Deposits are automatically enrolled in a cash sweep program, which provides up to $10M of aggregate FDIC pass-through deposit insurance coverage, across participating FDIC-insured network banks, subject to limits.

So they are trying to do a FinTech bank, meaning a small bank that the company partners with takes in the risk to hold your money. But in order to save money, certain features are usually not available that would be in a traditional bank.

X Payments LLC is not an FDIC-insured bank. Deposit insurance only covers the failure of an insured bank.

He's pulling a Paypal. Your money isn't directly FDIC insured when it's processed through X.

So yeah...use this at your own risk.