4 ms·

Not to spread FUD, but a friend of mine shared this with me some time ago. It's a good article. I suggest reading it. https://fintechbusinessweekly.substack.co

• toss1 4y ago
  Looks like the key info is that Evolve is partnered with MANY other services, including some in crypto land and they are having issues, so some VCs were advising people to move money off of Evolve and onto Mercury's other partner, and a bit of that happened. Here's the quote: >>"Multiple VCs, including Sequoia and Craft Ventures, have advised their startups to move funds away from Evolve-backed platforms, resulting in about $200 million being moved off Mercury, according to multiple people with knowledge of the matter. >>Immad Akhund, co-founder and CEO of Mercury, didn’t deny that the funds had been moved and characterized the amount as “not really material,” saying the company has “billions of dollars in deposits across 100K customers and [is] profitable.” >>Akhund characterized the money movement as “primarily folks diversifying, rather than full churning,” by moving funds to Mercury’s other bank partner, Choice, or into Mercury’s treasury management product."
  • willmadden 4y ago
    Don't get me wrong, I like Mercury. They have a sweep program that allows you to 4x the FDIC insurance up to 1mm and moves it across multiple banks including JPM. I think the writeup about Evolve was more compliance than issues with its assets and liabilities.