Benzinga | Dec 16, 2021 08:22AM EST

Futu Holdings Partners With StoneCastle Insured Sweep To Provide Insured Cash Platform To Brokerage And Wealth Management Clients; Terms Not Disclosed

Futu Inc. ("Futu" or the "Firm"), a subsidiary of Futu Holdings Limited (NASDAQ:FUTU), an advanced technology company offering fully digitized brokerage and wealth management platforms, recently announced a deal with StoneCastle Insured Sweep, LLC ("SCIS") to provide insured cash sweep services to Futu's brokerage clients. Implementation of the insured cash platform took place in early November 2021.

"Offering a bank sweep product to our clients is a natural progression of the continued expansion of our products and services," said Keith Chan, CEO of Futu.

Insured cash sweep programs have become commonplace in the industry and have grown to more than a trillion-dollar cash category over the past couple of decades. "We constantly look for partners that truly differentiate themselves in the marketplace," said David Gareis, a senior executive at SCIS. "Our size, business model, experience on digital platforms, and ability to source the banks they need to run and grow their programs made it a natural fit."

"Futu engages closely with its clients who have come to expect us to innovate and enhance client-experience. Adding a feature that provides greater protection for clients' cash while allowing them to earn interest is a win for our clients," concluded Chan.