Giving up freedom and operational control of your business for FDIC insurance and 1% of yield is silly.
Seems like every day recently my timeline is full of the same stories with a bunch of BDs piling into the comments saying they’re different. Cards suddenly down, accounts frozen mid-payroll, withdrawal limits out of nowhere, provider switches that lock funds for days, and support that can’t actually do anything because the real rails aren’t theirs. This is the predictable result of building on top of bank infrastructure you don’t control.
If insurance coverage is actually the concern, the rational move is straightforward: open accounts at as many different banks as you need and park the balance you’re willing to insure in each one. You don’t need to concentrate everything in one place to get it.
What you do give up when you stay inside those systems is control. As soon as the money sits with a third party that ultimately answers to bank partners, you inherit their freeze risk, their compliance triggers, their rate limits, their downtime, and their ability to change the rules on you. “We’re different” and “trust us” don’t change the stack. The promises are empty because they don’t have control either.
We don’t have to keep doing this. Self-custody of operating capital (or at least the portion that needs to move freely) lets a business hold and move funds without asking permission, without artificial caps, and without a middleman who can unilaterally pause activity. Insurance on idle reserves can still live in traditional accounts. At the very minimum, the operational float doesn’t have to.
The empty promise was that convenience and a logo would replace actual control. It hasn’t. I think that’s pretty clear.