Mercury launches two exclusive cash funds, deepening its $5.2B platform play
What's the deal? Business banking fintech Mercury launched two Mercury-only investment funds, partnering with Morgan Stanley Investment ManagementDealroom has a profile for this one. Try Dealroom → and State Street Investment ManagementDealroom has a profile for this one. Try Dealroom →. The funds let customers earn yield on idle cash while keeping that money on Mercury's platform.
How it works: Customers access the funds through Mercury Treasury, the company's service for investing excess business cash. To qualify, businesses must hold at least $250,000 on the platform, with an annual management fee of 0.15% to 0.60% — larger balances pay less.
MCRYX, an ultra-short bond fund from Morgan Stanley, is available with a net annual yield of up to 3.88%. That maximum applies only to customers holding more than $20 million in deposits. MRGXX, a share class of State Street's government money-market fund, is expected in the weeks following the August 2026 launch.
What could go wrong? Unlike a savings account, the investments are not FDIC-insured and may lose value. MCRYX has a floating net asset value and carries principal risk, though the funds are built for liquidity — same-day access for the State Street fund and next-day for Morgan Stanley.
Chief financial officer Dan Kang said Mercury limited risk by picking lower-risk investments. “We want to make sure that the portfolios that we put forward really, really make sense, that they're safe and sound,” he said.
Why funds, not savings? Mercury chose funds over a high-yield savings product because banks can change deposit rates or cap their best rates. “For a customer, having certainty that you will earn yield on your funds goes a long way,” Kang said. “The bank could pull that back at any moment in time.”
What's the endgame? Mercury wants to spare founders from “having to go out and piece together multiple different banking relationships,” Kang said. Later in 2026, it plans to add Treasury Ladders, letting customers spread cash across US Treasury securities with different maturity dates.
The signal: The launch is Mercury's latest effort to keep customer cash on its platform as rivals like Brex, Ramp, and Rho roll out their own high-yield products. In May 2026, Mercury raised $200 million in a TCV-led Series D that valued it at $5.2 billion.
Read more: This Week in Fintech
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