We wanted to update you on the recent Silicon Valley Bank news and assure you that it has not impacted Onyx. While traditional banks like SVB rely heavily on consumer deposits to lend and invest, our platform operates differently. We do not depend on consumer deposits or leverage or generate revenue from lending. Instead, we earn revenue solely from card transactions, investments, and membership fees.
To ensure the safety and security of your funds, money in our platform is held in custody with insurance by two highly reputable financial institutions, Piermont Bank and BNY Mellon, with over $2T of assets globally. We provide multiple layers of insurance on Onyx accounts, which are additive: $250,000 FDIC insurance for checking accounts, $500,000 SIPC insurance on Cash Sweep & investment products, and US Treasuries (T-Bills) backed without limit by the US government. In conclusion, Onyx’s high-yield cash management uses multiple bank partners to maximize yield, liquidity, and insurance coverage.
SVB played an important role over the years across the tech and start-up industry, and we are deeply saddened about its outcome and the consequences to the US innovation ecosystem. We wish the best for those impacted by SVB.
We are committed to providing a safe, secure, diversified personal finance platform to manage your money. If you have any questions or concerns, please do not hesitate to contact our team.
Thank you for choosing Onyx.
CEO – Onyx Private