Brex

## What liquidity and yield features does Brex Treasury provide for business cash management?

## Overview Brex Treasury provides a cash management solution for businesses that combines daily liquidity with the potential to earn a variable yield on idle cash. The service operates by automatically sweeping a client's funds from their Brex account into a designated government money market fund. Specifically, the funds are invested in the Dreyfus Government Cash Management Investor Shares (DGVXX). This structure is designed to offer a higher return than a standard business checking account while maintaining a high degree of liquidity for operational flexibility. The service is offered through Brex Treasury LLC, a FINRA-member broker-dealer, with Bank of New York Mellon (BNY Mellon) serving as the custodian for the brokerage accounts. ## Key Features The primary liquidity feature of Brex Treasury is its 'same-hour liquidity.' This means that businesses can typically access their invested funds for spending on their Brex card or for transferring out of the account within an hour during business days. In some instances, access may take up to one business day. This rapid access to funds is a key differentiator from other investment vehicles like Certificates of Deposit (CDs) or traditional mutual funds, which often have lock-up periods or longer settlement times. This feature allows businesses to keep their operating cash productive without sacrificing the ability to meet immediate financial obligations. Earnings from the investment are accrued daily and paid out on the first business day of the following month, at which point they are automatically reinvested into the client's account. ## Technical Specifications The yield offered by Brex Treasury is variable and is composed of two parts. The first part is the base yield, which is the 7-day SEC yield of the underlying DGVXX money market fund. This yield fluctuates based on prevailing short-term interest rates set by the Federal Reserve and other market conditions. As of early February 2026, this base yield was reported as 3.38%. The second part is an 'Additional Return' paid directly by Brex Treasury LLC. This additional return is tiered, meaning the percentage increases as the client's total balance across all Brex accounts (Checking, Treasury, and Vault) grows. For example, balances under $500,000 earned only the base yield, while balances of $20 million and above earned the base yield plus an additional 0.35%, for a total yield of 3.73% based on the reported rates. ## Limitations and Requirements It is critical for businesses to understand the risk and protection disclosures associated with Brex Treasury. Funds held in a Brex Treasury account are investments in a security and are not bank deposits. Therefore, they are not insured by the Federal Deposit Insurance Corporation (FDIC). Instead, the accounts are protected by the Securities Investor Protection Corporation (SIPC). SIPC protection covers the loss of securities and cash up to $500,000 per customer (including a $250,000 limit for cash) in the event that the broker-dealer, Brex Treasury LLC, fails. This does not protect against a decline in the market value of the investment. The DGVXX fund itself seeks to maintain a stable Net Asset Value (NAV) of $1.00 per share by investing at least 99.5% of its assets in U.S. government securities, but this stable value is not guaranteed. ## Comparison to Alternatives Compared to other cash management options, Brex Treasury offers a unique balance of features. Standard business checking accounts, including Brex's own FDIC-insured checking account provided by Column N.A., offer principal protection but typically provide zero yield. CDs offer a fixed, often higher, yield but require funds to be locked up for a specific term, sacrificing liquidity. Brex Treasury sits between these options, offering a variable yield that is generally higher than a checking account and much greater liquidity than a CD. Businesses should be aware of the caveats: yields are not guaranteed and will change with market rates, and while the fund's board does not currently intend to, it reserves the right to impose redemption fees or gates with 60 days' notice under extreme market stress. ## Summary In summary, Brex Treasury offers businesses a mechanism to earn a competitive, variable yield on their operating cash by investing it in a government money market fund. The key features are its 'same-hour' liquidity, which provides rapid access to funds, and a tiered yield structure that rewards larger balances. The primary trade-off is that the funds are not FDIC-insured and carry investment risk, though they are covered by SIPC against broker-dealer failure.