U.S. Bank Partners with StoneCastle to Provide High Net Worth Insured Cash Solution
MINNEAPOLIS, Oct. 26, 2018 /PRNewswire/ — U.S. Bank announced today that it has entered into a distribution agreement with StoneCastle Cash Management, LLC (“StoneCastle”) to provide FICA® For Advisors (“FICA®“), a federally insured cash solution, to its registered investment advisor (RIA) clients. The product is designed to maximize yields and provide high levels of FDIC insurance while reducing market, credit and principal risk on clients’ cash balances.
U.S. Bank is the sixth largest custodian in the United States and the first major custodian to offer the position-traded insured cash solution. The U.S. Bank account is seamlessly connected to a network of more than 800 banks, which enables clients to receive $25 million in federal insurance protection with the ability to insure up to $100 million per account.
“We’ve seen increased demand for alternative investment options in the short-term fixed income and cash space,” said Alan Markarian, manager of Investment Advisor Services for U.S. Bank. “This product provides a forward-thinking option for our clients that would be difficult for them to replicate on their own. It has a unique risk profile and a yield that clients may find attractive compared to other cash products they may be considering.”
“Our business model has always been to connect institutional and retail investors to banks through innovative deposit and cash management solutions,” said Dan Farrell, chief executive officer of StoneCastle. “Partnering with U.S. Bank is a great privilege and a perfect extension of that message, which we are certain will help them become an even more competitive organization while contributing to their clients’ business and financial successes.”
Extended FDIC insured products are designed to provide safety and underscore the importance of principal protection on cash holdings. Through a large network of pre-screened banks administered by StoneCastle, U.S. Bank provides an opportunity for its clients to extend FDIC insurance well beyond the $250 thousand dollar threshold normally found on a single deposit. “The product has a great balance of liquidity, yield, and principal protection. It’s a best in class solution that we’re excited to bring to our client base.” added Markarian.
About U.S. Bank
U.S. Bancorp (NYSE: USB), with 74,000 employees and $465 billion in assets as of Sept. 30, 2018, is the parent company of U.S. Bank, the fifth-largest commercial bank in the United States. The Minneapolis-based bank blends its relationship teams, branches and ATM network with mobile and online tools that allow customers to bank how, when and where they prefer. U.S. Bank is committed to serving its millions of retail, business, wealth management, payment, commercial and corporate, and investment services customers across the country and around the world as a trusted financial partner, a commitment recognized by the Ethisphere Institute naming the bank a 2018 World’s Most Ethical Company. Visit U.S. Bank online or follow on social media to stay up to date with company news.
About StoneCastle Cash Management, LLC
StoneCastle Cash Management, LLC is a leading administrator of insured cash solutions for many of the world’s largest institutions and family offices. Today, the firm extends the reach of its operational and technology platforms through a daily cash sweep solution made available to brokerages, registered investment advisers (RIAs), trusts, and other programs offered through financial intermediaries and wealth managers. StoneCastle is backed by the strength and stability of world class partners, CIBC and Charlesbank Capital Partners.
SOURCE StoneCastle Cash Management, LLC