For USD, Etana uses FDIC-insured banks. Fiat assets are federally insured.
For CAD, the CDIC insures transactions.
For other supported fiat currencies, the Deposit Protection Fund of the Association of German Banks secures the transactions.
Digital funds are insured from the moment they are custodied to the moment they reach their destination wallet with the counterparty. Digital wallets are insured up to USD $50m, but you can purchase additional insurance.