- Franklin’s new tool uses Summer.fi to deposit idle payroll funds into secure smart contract-based lending pools
- It offers a blockchain-based alternative to traditional sweep accounts and T-bills, aiming for higher yields with full capital custody
What happened: Franklin launches blockchain-powered payroll yield service
Franklin, a hybrid payroll platform that supports both crypto and fiat, has launched a blockchain-powered service allowing businesses to earn yield on idle payroll reserves. Dubbed Payroll Treasury Yield, the new initiative integrates decentralised finance lending protocol Summer.fi to channel stablecoin-denominated funds into vetted, overcollateralised lending pools.
The company told Cointelegraph that these smart contract-based deposits enable companies to retain full custody of their capital while generating returns. All contracts used in the process are audited to mitigate technical risk. Franklin’s CEO Megan Knab said the solution supports forward-thinking finance teams — especially those already working with digital assets — by turning operational reserves into yield-bearing assets.
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Why it’s important
The move positions Franklin as a bridge between traditional treasury operations and decentralised finance, offering an alternative to low-yield tools like T-bills or sweep accounts. By keeping control of funds and avoiding credit risk, companies may see higher returns with more flexibility.
Knab suggested the broader goal is to usher in a future where payroll and business payments run entirely on public blockchains, eventually replacing systems like ACH and SWIFT. In that vision, banks may become mere compliance entities, no longer central to payment processing.
Franklin’s launch aligns with growing institutional interest in yield-generating strategies for digital assets. Earlier this month, Solv Protocol launched a yield-bearing Bitcoin product on Avalanche, targeting institutional investors hungry for liquidity.
Still, decentralised lending isn’t without risks, from smart contract vulnerabilities to market shifts. Franklin claims to mitigate these by relying on audited infrastructure and high collateralisation ratios. If successful, this model could redefine payroll treasury management for crypto-integrated firms.
