As a startup, most of your time is (and should be) dedicated to growing your business. As a result, there's not much time leftover to think about areas like your corporate treasury and cash management. However, this overlooked opportunity can have major implications on the financial well, including runway, capital risk management, and liquidity for business operations.
In the past, Treasury products were tailored to the best practices of Fortune 500 companies, making investment opportunities inaccessible to most. Founders were forced to choose between storing capital in non-yielding bank accounts with only $250k of FDIC insurance, or exploring investment opportunities with unpredictable risk and liquidity.
That's why we're introducing U.S. Treasury Bills on Crescent. Now, any startup can easily take advantage of this high-yielding, low-risk asset class backed by the full faith of the U.S. Government. Crescent makes it simple to put idle cash to work and earn up to 5.08% on treasuries, with all assets custodied at BNY Mellon Pershing, the world's largest custodian of U.S. Treasuries.
What are U.S. Treasuries and how do they work?
U.S. Treasuries are a type of short-term government debt issued by the U.S. Department of the Treasury. They're viewed as a safe investment because they're supported by the full faith and credit of the U.S. government.
When you purchase a U.S. Treasury bill, you're loaning the government money for a specified term, usually from a few days to 52 weeks. The government pays you interest on your investment, and at the end of the term, the government returns the principal amount of your investment to you.
U.S. Treasuries are considered to be a low-risk investment because they're backed by the U.S. government, which is viewed as one of the most creditworthy entities in the world. Additionally, they're generally viewed as less volatile than other types of investments, such as stocks or bonds, because they're short-term investments.
Earn up to 5.08% with U.S. Treasuries, owned in your company’s name.
With Crescent, your startup can now take advantage of high-yielding U.S. Treasuries and put your hard-earned fundraise to work. Simply deposit your funds and select your preferred maturity dates — Crescent does the rest.
Because T-bills are a fixed-income asset, you lock in your rate of return at the time of purchase, providing you with a reliable yield. By comparison, high-yield savings accounts offer an average between 3-3.75% APY*, and their return is not fixed.
Securely store your Treasuries.
All treasuries purchased through your Crescent account are custodied at BNY Mellon Pershing in your company’s name. You can view and manage your treasuries through your dashboard to stay on top of your funds.
Sell anytime with next-day liquidity.
Need your funds early? No worries. While U.S. Treasuries are fixed-term instruments, you can sell your T-bills at any time without penalty or early withdrawal fees. Note: Selling your treasuries does have market risk.
Get notifications on upcoming maturity dates.
You have more important things to do than manage approaching maturity dates. As your T-bills near their maturity, we’ll send you texts and emails to make sure you never miss a beat.
We are always looking for more ways to help startups maximize their growth potential while minimizing risk. With T-bills, founders and startups can rest easy knowing that their cash is being put to work safely and effectively.
Want to try Crescent? Apply in under 10 minutes and get access to U.S. Treasuries.
*3-3.75% APY rate via Nerdwallet List of Business Savings Account 3-6-2023