Swvxx is like a mutual fund it’s not on the balence sheet of Schwab. The issue you need to worry about is if you have cash sitting in your account (for example waiting for 1-2 weeks for a CD settlement date ) you want to make sure the total of your cash sweep in all accounts is under the insured limits of $500k.
Also the issue with SVB , based on colleagues up there that are CFOs of startup companies is access to the money, not that it’s disappeared. It depends how the company held the funds. For example in most cases the startups use SVB and similar to Schwab they buy MM funds feom other providers such as wells Fargo ,etc. So those funds aren’t on SVBs balance sheet either. But since the FDIC shut the bank down, people can’t access those funds being managed by SVB.The immediate issue is access to those funds are frozen, for many startups, it’s hard to pay short term expenses like payroll .
