The digital asset management firm DAIM has launched a treasury management program for its corporate clients, designed to “meaningfully enhance” idle cash returns held in treasury.
DAIM said the program can help companies earn yields of up to 8 percent through “over-collateralized lending facilities, ranging from overnight to 12-month tenors, and can be called back on short notice.”
The firm vets borrowers and counterparties using extensive credit underwriting, collateral management assessment, asset / liability review, and quantitative and qualitative risk analysis, a process that has consistently produced high levels of credit worthiness and zero defaults. The borrowers in question post between 100 percent and 200 percent collateral.
With the DAIM program, U.S. dollars are wired to a qualified digital asset custodian and swapped for a stable coin. Stable coins go into a loan program. At the customers’ request, or when the term ends, the capital and interest is swapped back and returned to the source bank, DAIM said.
“The purchasing power of the dollar is decreasing due to the Federal Reserve’s extreme money printing,” DAIM said in a news release. “The main purpose of converting dollars into stable coins is to receive yield to preserve capital.”
It’s a newer asset class, one that removes the layers of middlemen existing in traditional banking, thus pushing more returns to account holders.
In an interview with PYMNTS earlier this year, Ledgermatic CEO Luke Sully spoke about how the corporate world is slowly but surely embracing digital adoption.
Sully said smart treasurers will be those who become more familiar and comfortable with digital assets, while also focusing on modernization and integration.
For more on how digital assets are changing the world of the corporate treasury, read our report from earlier this year.