Franklin, led by CEO Megan Knab, has introduced a blockchain-based payroll solution on November 2023, allowing companies to earn decentralized finance (DeFi) yields on payroll reserves using stablecoins with enhanced security.
This development signifies a shift towards integrating blockchain in payroll systems, enhancing corporate liquidity management and financial operations through innovative technology, with potential impacts on the cryptocurrency and corporate finance sectors.
Franklin Partners with Summer.fi for DeFi Payroll
Franklin, a hybrid cash and crypto payroll provider, has launched a blockchain payroll solution. This initiative, spearheaded by CEO Megan Knab, aims to modernize payroll by integrating stablecoin yields on company reserves.
The company partners with Summer.fi, using DeFi protocols for managing payroll operations. This technology empowers businesses to hold full custody of assets while earning from vetted borrowers through secure smart contracts.
Blockchain Payroll Offers Liquidity and Cost Savings
The blockchain payroll solution offers companies the advantage of liquidity and potential cost savings. By tapping into DeFi yields, businesses enhance financial flexibility, appealing to tech-savvy enterprises seeking innovative financial practices.
This approach’s adoption may lead to regulatory scrutiny. Historically, new financial technologies draw attention from regulators keen on ensuring compliance. However, Franklin’s audited contracts and emphasis on security might mitigate such regulatory concerns.
Franklin Extends Crypto Payroll Concepts to DeFi
Previous initiatives like Bitwage and Bitso introduced crypto payroll in 2016, setting a precedent for blockchain in salary payments. Franklin’s approach extends this concept, integrating DeFi for broader business financial utility.
Industry experts suggest that blockchain payroll solutions might revolutionize financial infrastructures by providing secure and efficient fund management. The focus on stablecoins indicates an inclination towards stability amid crypto market volatility.
“The problem that Franklin solves for is two-fold. For companies that have already integrated crypto onto their balance sheets, Franklin helps them use those assets to manage their operations… But for the broader market, we are enabling business models of the future, where money moves instantly, more intelligently, and to more globally.” – Megan Knab, Founder & CEO, Franklin
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