Public.com rolls out US Treasury Bills: 26-week T-Bill yields at 4.8%
“We built Public to make the public markets work for all people and this includes financial tools that may not dominate the headlines, but have been a staple for investors for nearly a century. Retail investors are evolving along with the market conditions they experience, and we continue to expand our platform to meet the multifaceted needs of modern investors.”
Public.com has announced the launch of Treasury accounts through a partnership with Jiko, a financial network for money storage and movement.
All U.S. treasury investments and investment advisory services are provided by Jiko Securities, Inc., a registered broker-dealer, member FINRA and SIPC. The product is not FDIC insured, nor does it have a bank guarantee. Banking services are provided by Jiko Bank, a division of Mid-Central National Bank.
The roll-out of the new product will enhance the investment platform’s offering to its more than 3 million users as Public’s Treasury accounts offer members similar flexibility to a high-yield savings account, but are currently offering even higher yields, the broker claims.
Public.com’s users can invest in T-bills for higher yields than savings
Treasury accounts are a new account type allowing members to invest their cash in U.S. Treasury bills that are automatically reinvested at maturity and can be sold at any time.
T-bills are considered a low-risk strategy for achieving a reliable yield. As T-Bill rates rise to over 15-year highs in the current inflationary environment, Public has made them available for its users without the usual barriers that kept retail investors from easily accessing them.
Powered by Jiko, which enables programmatic investment in T-Bills backed by the U.S. government and securely held at leading custody bank BNY Mellon, the 26-week T-Bill offering in these accounts is currently yielding 4.8% (as of Jan. 11, 2023), when held to maturity.
Public plans to introduce additional T-Bill terms in the coming months.
Jannick Malling, co-founder and co-CEO of Public, said: “We built Public to make the public markets work for all people and this includes financial tools that may not dominate the headlines, but have been a staple for investors for nearly a century. Retail investors are evolving along with the market conditions they experience, and we continue to expand our platform to meet the multifaceted needs of modern investors.”
Investors aiming toward diversification and risk mitigation
A recent survey quoted by Public.com found that nearly half of retail investors say they are more focused on diversification than they were a year ago, with many gravitating toward Treasury products to create more balance in their portfolios. The brokerage firm has reported that total investments in bond ETFs on Public have more than doubled since September 2022.
Public.com is further addressing this change in investor behavior – a greater focus on diversification and risk mitigation amid ongoing market turbulence – by rolling out Treasury bills to existing members. Full access is expected in the coming weeks.
The investment platform facilitates access to stocks, ETFs, crypto, and alternative assets, like fine art and collectibles. Public refuses to sell trades to market makers or take money from Payment for Order Flow (PFOF) – a controversial business model used by many popular platforms like Robinhood.