Brex Offers FDIC Insurance | PYMNTS.com

Brexitthe financial technology startup from San Francisco, offers FDIC insurance on its cash management account at no cost, the company announcement Wednesday (July 22).

The new Brex Cash feature allows customers to choose 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, co-founder and co-CEO of Brex, in a statement. “In today’s uncertain economic and interest rate environment, giving our customers flexibility in how they store their money is a powerful added benefit.”

Brex said 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 are excited to be a part of this exciting next phase of Brex Cash, giving Brex the ability to offer its clients same-day liquidity with principal protection and FDIC insurance,” said Doug Pagliaro, vice president. Senior Chairman and Executive Director of the FDIC. Scanning program at UMB, in a press release. “This partnership aligns with UMB’s strategy of working with best-in-class innovators like Brex.”

Brex also announced that Katie Biber has been named chief legal officer. His role will include legal and compliance oversight, including affiliate, Brex Treasury LLC, a registered securities and stock broker-dealer.

Biber most recently served as general counsel at Anchorage, a cryptocurrency platform, and has a proven track record of helping 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 deal funding cycle led by former 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 spend management and procurement tools.

In March, Brex opened its first international office, a technology hub in Vancouver, Canada. The site employs 40 people and will focus on software engineering and user experience processes.