Franklin, a hybrid cash and crypto payroll provider, has introduced its Payroll Treasury Yield initiative designed to generate returns from idle payroll funds. By utilizing blockchain lending protocols, companies can deposit stablecoin reserves into auditor-validated smart contracts, enabling them to earn yields while maintaining full control over their capital. This offering, in partnership with Summer.fi, aims to present a simpler alternative to traditional treasury tools like sweep accounts or T-bills, which typically have operational complexities and limited returns. Franklin's solution is framed as an innovative approach to facilitate instant and intelligent financial operations globally, with the potential shift towards on-chain payroll products possibly leading to diminished roles for traditional banks. Nonetheless, risks associated with decentralized lending, such as smart contract vulnerabilities, are acknowledged, and Franklin is taking measures to mitigate them through overcollateralized lending. The move reflects a growing interest in yield-generating strategies as both retail and institutional investors look to maximize returns on digital assets.

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