{"id":129552,"date":"2025-05-19T14:15:26","date_gmt":"2025-05-19T14:15:26","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129552"},"modified":"2025-05-19T14:15:26","modified_gmt":"2025-05-19T14:15:26","slug":"franklin-taps-blockchain-to-offer-yield-on-idle-payroll-funds","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129552","title":{"rendered":"Franklin taps blockchain to offer yield on idle payroll funds"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsFranklin, a hybrid cash and crypto payroll provider, is launching a new initiative that aims to turn idle-sitting payroll into an opportunity for yield.<br \/>\nThe new solution, dubbed Payroll Treasury Yield, uses blockchain lending protocols to help firms earn returns on payroll funds that would otherwise sit idle, the company told Cointelegraph in an exclusive statement.<br \/>\nFranklin said its new offering integrates Summer.fi, a decentralized finance (DeFi) lending platform, to allow companies to deposit stablecoin-denominated payroll reserves into smart contract-based lending pools.<br \/>\nThese funds are lent to vetted borrowers, and companies earn yields while retaining access to their capital. Companies maintain full custody throughout the process, and smart contracts used are audited to reduce risk.<br \/>\n\u201cThe problem that Franklin solves for is two-fold,\u201d Megan Knab, founder and CEO of Franklin, told Cointelegraph. For companies that have already integrated crypto onto their balance sheets, Franklin helps them use those assets to manage their operations, she said.<br \/>\n\u201cBut for the broader market, we are enabling business models of the future, where money moves instantly, more intelligently, and to more globally,\u201d Knab added.<br \/>\nSource: FranklinRelated: PayPal to offer 3.7% yield on stablecoin balances: Report<br \/>\nAlternative to T-Bills<br \/>\nFranklin said its new offering is an alternative to traditional treasury tools like sweep accounts or T-bills, which often involve operational complexity and limited returns.<br \/>\nFurthermore, it differentiates from earned wage access (EWA) platforms, which enable employees to access their earned wages before their scheduled payday by avoiding additional debt and associated costs.<br \/>\n\u201cTraditional payments in the next decade will run entirely on public blockchain rails as a wholesale replacement to ACH and SWIFT,\u201d Knab said.<br \/>\nShe added that if onchain payroll products go mainstream, banks could fade into the background. While technology may replace many banking functions with self-custody tools and smart contracts, regulatory frameworks will still require accountable legal entities.<br \/>\nThe result may be \u201czombie-like institutions\u201d \u2014 banks in name only, existing to meet compliance rules but playing a minimal role in actual payment processing, Knab said.<br \/>\nHowever, decentralized lending comes with risks like smart contract vulnerabilities and market fluctuations. Franklin said it aims to mitigate these by using Summer.fi\u2019s audited contracts and overcollateralized lending.<br \/>\nRelated: How to Use tsUSDe on TON for Passive Dollar Yield in 2025<br \/>\nRising interest in yield-generating strategies<br \/>\nInterest in yield-generating strategies within the cryptocurrency sector has surged in recent years, driven by both retail and institutional investors seeking to maximize returns on their digital assets.<br \/>\nOn May 16, Solv Protocol launched a yield-bearing Bitcoin token on the Avalanche blockchain, giving institutional investors more exposure to yield opportunities backed by real-world assets, or RWAs.<br \/>\nOn May 1, Ryan Chow, co-founder and CEO of Solv Protocol, said the demand for yield-generating strategies around Bitcoin\u00a0is surging, especially from firms seeking liquidity without liquidating their BTC.<br \/>\nMagazine:\u00a0Arthur Hayes $1M Bitcoin tip, altcoins\u2019 powerful rally\u2019 looms: Hodler\u2019s Digest, May 11 \u2013 17<a href=\"https:\/\/cointelegraph.com\/news\/franklin-launches-payroll-treasury-yield-defi?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsFranklin, a hybrid cash and crypto payroll provider, is launching a new initiative that aims to turn idle-sitting payroll into an opportunity for yield. The new solution, dubbed&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129552"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129552"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129552\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129552"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}