our assets significantly exceed the FDIC $250k insurance limit and there are operational costs to splitting assets across a large number of banks
This isn’t strictly true: Some “banks” partner with many (real) banks to get greater FDIC coverage. E.g.: Wealthfront has up to $5M FDIC (so I imagine they partner with up to 20 accredited banks).
This isn’t strictly true: Some “banks” partner with many (real) banks to get greater FDIC coverage. E.g.: Wealthfront has up to $5M FDIC (so I imagine they partner with up to 20 accredited banks).