[darcys22]

They deposited 3B with this bank for the specific purpose of it being a safe place.

Their 10B in cash was spread over 6 banks to diversify the bank risk.

They have plenty of higher risk investments in their treasury, but these ones were the safe ones intentionally put into banks with insurance. If the government protection wasn't there the investment would’t have been there in the first place

[JumpCrisscross]

> 10B in cash was spread over 6 banks to diversify the bank risk

This is nonsense Treasury management. Fidelity spreads checking account deposits across twenty-six banks to reach $3mm FDIC coverage [1]. Beyond sweep, Circle’s assets should be in short-term, on-the-run Treasuries, repos and commercial paper.

[1] https://accountopening.fidelity.com/ftgw/aong/aongapp/fdicBa...

[darcys22]

They do hold 32B in short term treasury bills though

https://www.blackrock.com/cash/en-us/products/329365/

These funds appear to be specifically for short term redemptions, if they turn over 3B in redemption's every 7 days then how are they meant to keep less then that in the banks

[benatkin]

But the insurance doesn't apply to the full amount.

[oldgradstudent]

The insurance is negligible for them.