DAIM launches stable coin treasury management programme
07 June 2021 US
Image: stock.adobe.com/denisismagilov
Digital asset management firm DAIM has launched a treasury management programme.
The DAIM Treasury Management Program for corporate clients will enhance idle cash returns held in treasury and could help companies earn up to 8 per cent yields through over-collateralised lending facilities, ranging from overnight to 12-month tenors.
Because the purchasing power of the dollar is decreasing as a result of the Federal Reserve's money printing, converting dollars into stable coins receives yield and preserves capital, DAIM says.
The digital asset space is a newer asset class that cuts out the middle men in the traditional banking system and instead pushes more returns to the account holder.
USD is wired to a qualified digital asset custodian, such as DAIM. Those dollars are swapped for a stable coin, a class of cryptocurrencies that offer price stability and are backed by a reserve asset. The stable coins are placed into a loan programme. Upon request, or at the end of the term, the capital and interest is swapped back and returned to the source bank.
All borrowers and counterparties are thoroughly vetted through extensive credit underwriting, collateral management assessment, asset and liability review, and both quantitative and qualitative risk analysis, DAIM says.
This process has yielded zero defaults and a consistently high level of creditworthiness and these trusted institutional and corporate borrowers post between 100% and 200% collateral, the digital asset management firm claims.
The DAIM Treasury Management Program for corporate clients will enhance idle cash returns held in treasury and could help companies earn up to 8 per cent yields through over-collateralised lending facilities, ranging from overnight to 12-month tenors.
Because the purchasing power of the dollar is decreasing as a result of the Federal Reserve's money printing, converting dollars into stable coins receives yield and preserves capital, DAIM says.
The digital asset space is a newer asset class that cuts out the middle men in the traditional banking system and instead pushes more returns to the account holder.
USD is wired to a qualified digital asset custodian, such as DAIM. Those dollars are swapped for a stable coin, a class of cryptocurrencies that offer price stability and are backed by a reserve asset. The stable coins are placed into a loan programme. Upon request, or at the end of the term, the capital and interest is swapped back and returned to the source bank.
All borrowers and counterparties are thoroughly vetted through extensive credit underwriting, collateral management assessment, asset and liability review, and both quantitative and qualitative risk analysis, DAIM says.
This process has yielded zero defaults and a consistently high level of creditworthiness and these trusted institutional and corporate borrowers post between 100% and 200% collateral, the digital asset management firm claims.
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