Franklin taps blockchain to offer yield on idle payroll funds
Franklin is launching Payroll Treasury Yield, a solution that allows companies to earn returns on idle payroll funds using blockchain lending protocols. This initiative integrates with Summer.fi, a DeFi lending platform, enabling firms to deposit stablecoin payroll reserves into smart contract-based lending pools. Companies can earn yields while retaining access to their capital, with full custody maintained throughout the process. Franklin positions this offering as an alternative to traditional treasury tools like T-bills, emphasizing the potential for future business models that utilize instant, intelligent money movement. The initiative may challenge traditional banking roles, as decentralized lending could replace many banking functions. However, risks such as smart contract vulnerabilities and market fluctuations are acknowledged, with Franklin aiming to mitigate these through audited contracts and overcollateralized lending. Interest in yield-generating strategies in the cryptocurrency sector has increased, driven by both retail and institutional investors.
