Brex, the San Francisco financial technology startup, is offering FDIC insurance on its no-fee cash management account, the company announced Wednesday (July 22).
The new feature in Brex Cash allows customers the choice to hold cash savings with FDIC insurance, or invest in Money Market Funds.
“Brex Cash gives its customers peace of mind when it comes to storing and accessing their money,” said Henrique Dubugras, Brex co-founder and co-CEO, in a statement. “With today’s uncertain economic and interest rate environment, offering our customers flexibility on how to store their cash is a powerful added benefit.”
Brex said the FDIC insurance on uninvested cash reserves up to $250,000 is the result of a partnership with UMB Financial Corp., a financial services holding company based in Kansas City, Missouri.
“We’re thrilled to be a part of this next exciting phase of Brex Cash, giving Brex the ability to offer their customers same day liquidity with principal protection and FDIC insurance,” said Doug Pagliaro, senior vice president and executive director of the FDIC Sweep program at UMB, in a statement. “This partnership aligns with UMB’s strategy of working with best-in-class innovators like Brex.”
Brex also announced Katie Biber has been named chief legal officer. Her role will include legal and compliance oversight including the company affiliate, Brex Treasury LLC, a Securities and Exchange-registered broker-dealer.
Biber most recently served as general counsel at Anchorage, a cryptocurrency platform, and has a track record of helping to launch innovative products and services, in cooperation with regulators, Brex said.
Since its inception three years ago, Brex has raised more than $400 million in funding and is backed by partners including Y Combinator Continuity, Kleiner Perkins, and the founders of PayPal, Brex said.
In May, Brex closed a $150 million funding round led by previous investor DST and new investor Lone Pine Capital, Brex said. Brex said the new funding would be used for engineering and design to advance its tools for expense management and procurement.
In March, Brex opened its first international office, a technology hub in Vancouver, Canada. The location has a 40-person workforce and will focus on software engineering and user experience processes.