Arc increases available FDIC coverage to $5.25M to safeguard startups’ deposits

Don Muir

Co-Founder & CEO

Arc Network —

Fear of a widespread banking crisis has gripped startups since the collapse of Silicon Valley Bank, and First Republic Bank has led founders across the tech sector to seek safer ground. Founders and VCs alike are concerned about the stability of the banking system as a whole, and have acted quickly to better protect their cash. In the aftermath of these crises, higher FDIC insurance has proven to be one of the most effective ways to do just that.

Books will be written for a long time as to exactly how we got to this point (for more of my thoughts on this, check out my latest Forbes column). For now, however, our main priority is to continue improving the protection we make available to our customers through these turbulent times.

To that end, I am excited to announce that we have nearly doubled the amount of FDIC insurance available on the Arc platform through our partner banks to $5.25M¹—bringing the total available FDIC/SIPC coverage to $5.75M¹. When combined with the ability to invest in U.S. T-Bills, startups can now effectively protect the entirety of their deposits through the Arc platform. But that’s not all.

Unlike many other bank deposit sweep programs in the market, Arc’s sweep offering is yield-bearing – paying over 2% annual percentage yield (APY) on deposits. Founders and finance teams no longer need to balance security vs. returns—they get the best of both worlds.

As I have said in the past, Arc is not a bank and that’s a good thing for startups. We are a financial technology company, and as such we partner with the largest and most reputable banks in the world to provide cash management services. Today, the funds of startups who work with Arc are held at Evolve Bank & Trust, Bank of New York Mellon, and a diverse set of 50+ banks, including Goldman Sachs, JPMorgan Chase, and Citibank, via bank deposit sweeps.¹

We are pioneering a new generation of banking products, centered around trust and transparency. One where banks act in the best interests of their depositors—increasing our FDIC coverage was just another step to deliver what startup founders are asking for.

Signing up

Current Arc Customers:

  • You already have a Treasury (brokerage) account – simply transfer additional funds into your Treasury account. These funds will automatically allocate into the bank deposit sweep by default and receive $5M FDIC coverage¹.
  • You don’t have a Treasury (brokerage) account yet – sign up for one in the Arc dashboard, transfer funds into the account, and they will automatically allocate into the bank deposit sweep by default and receive $5M FDIC coverage¹.

Non-Arc Customers:
Sign up for an account at, which takes <5 mins. Select “Treasury” when prompted to select an account type in onboarding.

Moving forward

Arc is in the strongest financial position it ever has been – deposits on our platform have multiplied meaningfully since March, and we’re excited to serve leading startups and VC funds on our platform each day. We’re fortunate enough to have relationships with the largest financial institutions in the world who have stood the test of time and continue to push ahead.

Thank you for your continued support and trust in Arc,


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