Mercury, a startup that provides banking services for other startups, is offering customers expanded FDIC insurance of up to $3 million via a new product in the wake of Silicon Valley Bank’s collapse. That’s 12x the industry standard for institutions of $250,000 in FDIC insurance that other institutions offer.
Immad Akhund, CEO and co-founder of Mercury, told TechCrunch that his team worked on the new product, called Mercury Vault, over the weekend.
Customers, existing and new, with more than $3 million in their accounts will be prompted to move funds into Mercury Treasury’s Vanguard money market funds, which are 99.5% invested in U.S. government-backed securities (mutual funds predominantly composed of T-bills) and held 100% in the customer’s name. As the company continues to work on the product, ...
