What Are Medallion Signature Guarantees and Why They Matter

A Medallion Signature Guarantee is a special certification that verifies your identity and authorizes your signature for financial transactions. Unlike a regular notary public stamp, which simply confirms you signed a document in front of a witness, a Medallion Signature Guarantee carries the backing of a financial institution and protects against fraud in high-value transactions.

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Financial institutions created the Medallion Signature Guarantee program in 1981 to reduce fraud and protect against unauthorized transfers of securities, stocks, and bonds. When you transfer securities worth significant amounts, brokers and transfer agents often require a Medallion Signature Guarantee before processing your request. The guarantee essentially tells the financial institution receiving your request that another institution has verified your identity and that your signature is authentic.

The difference between a notary and a Medallion Signature Guarantee matters significantly. A notary public can cost between $5 and $25 per signature and simply witnesses your signing. A Medallion Signature Guarantee costs between $10 and $75 depending on the institution and your account status, but it carries federal backing through one of three national programs: the Securities and Exchange Commission (SEC), the New York Stock Exchange (NYSE), or the Federal Reserve Board.

You typically need a Medallion Signature Guarantee when transferring stocks or bonds between accounts, transferring securities to another person, removing a name from a brokerage account, executing powers of attorney related to securities, or making changes to securities account registrations. The guarantee protects financial institutions from losses due to forged signatures on these high-value transactions. According to the SEC, billions of dollars in securities transactions occur annually, and fraud prevention mechanisms like Medallion Signature Guarantees help protect both individual investors and institutions.

Practical Takeaway: Understand that Medallion Signature Guarantees serve as fraud prevention tools for significant financial transactions, particularly those involving securities. They go beyond standard notarization and require verification by a participant institution in one of the three national programs.

Which Banks and Financial Institutions Offer Medallion Signature Guarantees

Not every bank offers Medallion Signature Guarantees. To provide one, institutions must be members of one of three programs: the Securities and Exchange Commission Medallion Program (SEMP), the Stock Exchanges Medallion Program (STAMP), or the New York Stock Exchange Medallion Program (NYSE MP). These programs maintain standards for who can issue guarantees and establish liability limits for institutions that participate.

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Large national banks frequently offer Medallion Signature Guarantees to their customers. Wells Fargo, Bank of America, JPMorgan Chase, Citibank, and U.S. Bank all participate in one or more of the national programs. However, your local or regional bank may not offer this service, even if they offer notary services. When you contact your bank, ask specifically if they participate in a Medallion Signature Guarantee program—don't assume they do simply because they're a financial institution.

Investment firms and brokerage houses represent another major source for Medallion Signature Guarantees. Firms like Fidelity, Schwab, Vanguard, and other investment companies often provide this service to their clients. If you hold securities with a brokerage, that firm may be your most straightforward option because the company already has your account information on file. Many brokerages provide Medallion Signature Guarantees to account holders at no charge or for a minimal fee.

Credit unions present a mixed picture. Some larger credit unions participate in the Medallion programs, while smaller ones do not. According to the Credit Union National Association, participation depends on the individual credit union's size and business model. If you bank at a credit union, contact them directly to ask whether they offer Medallion Signature Guarantees.

Insurance companies and trust companies may also offer this service. If you work with an investment advisor or have accounts through a trust company, inquire whether they can provide a Medallion Signature Guarantee. The key is contacting the specific institution and confirming their participation before visiting in person.

Practical Takeaway: Contact your primary financial institution, brokerage, or bank first to see if they offer Medallion Signature Guarantees. If not, ask for a referral to an institution that does, or search the official program websites for participating members near you.

Understanding the Three Medallion Signature Guarantee Programs

Three distinct programs manage Medallion Signature Guarantees in the United States, each with slightly different rules and liability coverage limits. Understanding which program your chosen institution uses will help you know what to expect regarding fees, processing time, and coverage.

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The Securities and Exchange Commission Medallion Program (SEMP) represents the broadest program, including over 6,000 participating institutions nationwide. SEMP is intended for smaller institutions and those with lower volumes of guarantees. The program covers guarantees up to $500,000 per transaction. Banks, broker-dealers, credit unions, and trust companies participate in SEMP. If you're working with a regional bank or smaller investment firm, SEMP participation is common.

The Stock Exchanges Medallion Program (STAMP) serves mid-sized institutions with moderate guarantee volumes. STAMP covers guarantees up to $1 million per transaction and attracts larger regional banks and brokerage firms. Approximately 900 institutions participate in STAMP. If you're working with a bank or broker of moderate size in a major metropolitan area, they may be STAMP participants.

The New York Stock Exchange Medallion Program (NYSE MP) is restricted to New York Stock Exchange member firms and includes the largest brokerages and investment banks. This program covers guarantees up to $10 million per transaction and is the most stringent program with the highest standards for participating institutions. If you're working with one of the "big four" brokerages or a major investment bank, you're likely accessing NYSE MP protection.

The differences between programs matter for your protection. Higher liability limits mean more coverage if something goes wrong with your transaction. However, all three programs maintain insurance pools and institutional safeguards. According to Securities Industry and Financial Markets Association (SIFMA) data, fraud rates involving Medallion Signature Guarantees remain extremely low—under 0.1% of all guaranteed transactions—indicating that all three programs effectively prevent unauthorized transfers.

Practical Takeaway: Regardless of which program your institution participates in, you receive protection against fraud. SEMP suits smaller institutions, STAMP serves mid-sized firms, and NYSE MP protects major brokerages. The program type rarely affects your personal experience as a customer.

Step-by-Step Process for Obtaining a Medallion Signature Guarantee

Obtaining a Medallion Signature Guarantee involves several steps that typically take 15 to 30 minutes if completed in person, though some institutions now offer remote options. Understanding the process helps you prepare and prevents delays when you visit your bank or brokerage.

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First, confirm with your institution that you need a Medallion Signature Guarantee rather than a regular notarization. Review the document requiring the guarantee—transfer forms, power of attorney documents, or account change requests often specify what type of certification is needed. Call your bank or broker's main number, ask for the department handling medallion guarantees (sometimes called the "operations" or "trust" department), and confirm they offer this service and current processing times.

Second, gather required identification and documents. Bring a photo ID (driver's license or passport), any documents requiring the guarantee signature, and your account information. The institution will verify your identity against their records. If you're not an existing customer, many institutions will not provide a Medallion Signature Guarantee, as the guarantee requires the issuing institution to verify your identity thoroughly.

Third, schedule an appointment or visit in person during business hours. Some large institutions allow walk-ins during specific windows, while others require advance notice. Ask about timing when you call. Bring all required documents and your ID.

Fourth, present yourself to the guarantor—typically someone in the operations or trust department. They will examine your identification, confirm your account status with the institution, and verify you're signing voluntarily and understanding the transaction. This step usually takes 5 to 10 minutes and involves questions about the purpose of the guarantee and confirmation of your identity.

Fifth, sign the document in front of the guarantor. This is crucial—the guarantee is only valid if you sign in the presence of the