Franklin, a cash and crypto payroll provider, has introduced Payroll Treasury Yield, a solution enabling companies to earn DeFi yields on idle payroll funds. By leveraging blockchain lending protocols, firms can deposit stablecoin payroll reserves into lending pools via the Summer.fi platform. These pools lend to vetted borrowers, allowing companies to earn returns while retaining access to their capital, all facilitated through audited smart contracts. CEO Megan Knab notes that the service offers a simplified alternative to traditional treasury tools like sweep accounts or T-bills, which often have operational complexities. This initiative reflects a broader movement towards instantaneous and intelligent financial transactions on public blockchain networks, with potential implications for traditional banking institutions. As decentralized lending carries risks such as smart contract vulnerabilities, Franklin emphasizes using audited contracts and overcollateralized lending to mitigate these risks. The initiative comes amid a growing interest in yield-generating strategies among both retail and institutional investors, indicating a shift in how businesses manage idle funds in the crypto landscape.

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