Fintech Brex got billions of dollars in Silicon Valley Bank deposits Thursday

SVB Financial meltdown: Here's the latest

Revealed: The Secrets our Clients Used to Earn $3 Billion

Fintech start-up Brex got billions of dollars in deposits from Silicon Valley Bank consumers on Thursday, CNBC has actually found out.

The business, itself a high-flying start-up, has actually benefited after equity capital companies encouraged their portfolio business to withdraw funds from Silicon Valley Bank today.

Brex opened countless brand-new accounts amounting to billions of dollars in inflows on Thursday, stated an individual with direct understanding of the circumstance. By midday Friday, regulators closed down SVB and took control of its deposits, according to the Federal Deposit Insurance Corp.

Other business consisting of JPMorgan Chase, Morgan Stanley and First Republic likewise saw increased inflows Thursday, as SVB’s stock tanked amidst VC-fueled issues of a bank run. The significant decrease in SVB shares triggered a sectorwide sell-off that advised some start-up creators of what took place throughout the 2008 monetary crisis. Earlier today, crypto-focused bank Silvergate stated it was unwinding operations.

Brex decreased to discuss its inflows.

The exodus of deposits Thursday put increased pressure on SVB, which tried to raise equity financing previously today and had actually relied on a possible sale, CNBC reported.