Why working capital matters more than ever
This article is a contribution from our content partner, Kyriba Economic uncertainty. Supply chain disruptions. Rising inflation. Shifting consumer demands. Today’s financial landscape is anything but predictable. For businesses, these challenges are more than just economic headlines—they’re daily hurdles that require strategic planning and agility. Amid this turbulence, one factor has become a lifeline for businesses trying to stay resilient and seize growth opportunities: working capital. By effectively managing and optimizing working capital, companies can maintain liquidity, operate efficiently, and position themselves for long-term success. This blog will explore what makes working capital so critical in today’s economy, break down its components, and offer actionable strategies to optimize it. Why working capital is a game-changer in today’s economy Working capital is no longer just a financial metric on a balance sheet. It’s a strategic tool that helps businesses adapt to disruption, capitalize on opportunities, and ensure operational stability. Today, liquidity is the new currency of resilience. Here’s why working capital plays a pivotal role: Breaking Down the Components of Working Capital Working capital management revolves around optimizing the Cash Conversion Cycle (CCC)—a foundational metric that measures how quickly a company can turn its investments in inventory and resources into cash flow from sales. The three levers of the CCC are: Optimizing these three components is challenging, especially in a globalized landscape with multiple ERPs, business units, and jurisdictions at play. Advanced analytics and digital financial platforms are essential for real-time visibility, scenario planning, and agility. Real-world example: Bray International The scale of the challenge is clear: in our recent CFO survey, more than 70% of finance leaders across key global markets, including the US, UK, Japan, and France, expressed concern about the impact of supply chain issues on their organizations’ financial health and outlook. In France, that figure reached 80%. The message is clear: volatility is not a passing phase, but a defining feature of today’s business landscape. To see how optimizing working capital can drive resilience, take a lesson from Bray International. When tariffs disrupted trade relations in the U.S., Bray could have reacted defensively. Instead, they took proactive measures like diversifying manufacturing locations and leveraging liquidity for strategic investments. By adopting data-driven decision-making and scenario planning, they managed to not only mitigate risks but also turn uncertainty into competitive advantage. Their agility underscores the importance of working capital in dynamic environments. Strategies for Optimizing Working Capital Managing working capital effectively is a strategic imperative. Here are actionable steps your business can take today: Overcoming challenges in working capital management While working capital optimization is essential, businesses face unique challenges that make it difficult to maintain. Here are some common hurdles: Rising inflation Higher costs for raw materials, labor, and logistics directly impact purchasing power. Businesses must adopt efficient procurement processes and limit cost variability. Supply chain disruptions Extended lead times and increased inventory holding costs have made efficient inventory management more critical than ever. Strategies like nearshoring and alternative supplier sourcing can offer relief. Stricter credit terms Suppliers tightening credit terms puts additional financial pressure on businesses. Companies need to negotiate better payment terms and explore financing options to reduce strain. Turning uncertainty onto opportunity Today’s volatile conditions have raised the stakes for working capital management. While the challenges may seem daunting, businesses that view uncertainty as an opportunity for strategic growth can thrive where others retreat. By focusing on receivables, inventory, and payables, and leveraging technology and strategic insights, businesses can free up cash, reduce costs, and position themselves for long-term success. From financial flexibility to strategic advantage Working capital is no longer just a financial metric. It’s a lifeline for businesses navigating modern volatility and an enabler of strategic growth. Companies that treat it as an enterprise-wide priority will emerge stronger, more competitive, and better equipped to seize the opportunities hidden within disruption. Now’s the time to reimagine how your organization manages its cash flow. With proactive strategies and the right tools, you can transform working capital from a routine financial consideration to a strategic lever for success. Read more from Kyriba Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
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Citi & Coinbase: A Turning Point for Digital Payments in Treasury
From Treasury Masterminds When Citi announced on 28 October 2025 that it would partner with Coinbase to offer “digital-asset payment solutions” to institutional clients, it signalled something bigger than a single bank-exchange collaboration. It marked another step in the gradual convergence between traditional finance and the digital-asset world — and a moment treasury professionals can’t afford to ignore. According to Reuters, the partnership will initially allow Citi’s U.S. institutional clients to move fiat funds through Coinbase’s infrastructure and explore conversion into stablecoins — digital tokens such as USDC or EURC, designed to maintain a stable value and backed by traditional assets. Citi has also hinted that the service could expand globally. For corporate treasurers, this development is less about crypto speculation and more about infrastructure modernisation. It opens the door to faster cross-border payments, new liquidity options, and more efficient settlement processes that might one day rival today’s SWIFT-based networks. Lorena Pérez Sandroni, Treasury Masterminds board member, added: “Citi partnering with Coinbase is a signal. The financial system is shifting, and global banks are positioning for a new payment infrastructure where speed, transparency, and programmability are no longer ‘nice to have’ — they’re expected. This isn’t about betting on crypto; it’s about modernising the rails that money moves on.” The Bigger Trend: From Parallel Systems to Integration For years, banks and digital-asset platforms operated in separate worlds — traditional finance on one side, crypto exchanges on the other. That separation is shrinking fast. We’ve already seen: Now, with Citi and Coinbase teaming up, the message is clear: banks are no longer just observing digital assets; they’re integrating them. This matters for treasury because the core promise of digital-asset rails aligns with what treasurers constantly seek — speed, transparency, cost efficiency, and control. Lorena also noted: “If cross-border transactions can settle in minutes, 24/7, with full traceability, then waiting days through legacy, expensive correspondent networks starts to look outdated — and questionable.” Opportunities for Treasurers 1. Faster Cross-Border Settlement: Moving funds between subsidiaries or paying suppliers overseas can take days through traditional channels. Using stablecoins or blockchain rails could reduce this to minutes — potentially improving liquidity visibility and reducing working-capital buffers. 2. Extended Payment Hours: Unlike conventional banking systems bound by cut-off times, blockchain-based payments operate 24/7. This could reshape treasury’s approach to liquidity windows, especially for businesses operating across time zones. 3. Enhanced Transparency: Blockchain-enabled transactions are traceable and timestamped, offering real-time confirmation. For treasurers, that means fewer reconciliation delays and faster confirmation of fund flows. 4. Lower Transaction Costs: Depending on volume and jurisdiction, bypassing intermediary banks could reduce correspondent fees and FX spreads — though this will depend heavily on regulatory acceptance and liquidity depth in digital markets. Lorena noted: “Corporates are demanding better payment efficiency — faster liquidity, lower settlement costs, and more real-time control. Blockchain-based stablecoin rails can deliver exactly that.” Risks & Governance Considerations However, every opportunity brings its own complexity. Regulation and Compliance: The legal framework around stablecoins and digital-asset payments is still evolving. Treasurers must ensure compliance with AML/KYC standards, sanctions screening, and data-protection requirements when onboarding digital-asset service providers. Audit and Accounting: Under IFRS and GAAP, stablecoins aren’t yet treated as cash or cash equivalents, which complicates balance-sheet classification. Accounting teams will need clear guidance on valuation, reporting, and impairment. Counterparty Risk: Even when working with a reputable exchange like Coinbase, treasury must evaluate the risk profile, custody arrangements, and service-level guarantees. Operational Risk: Integrating digital-asset payments introduces new workflows — key management, wallet security, and reconciliation logic — that differ from traditional bank accounts. Kortam Mohamed, Treasury Masterminds board member, adds “This is a promising step — like Ripple–GTreasury. But mainstream adoption depends on the backend. Banks and fintechs must seamlessly integrate stablecoins and blockchain with fiat systems and invest in training so treasury teams can manage wallets and blockchain workflows securely. Build trust through operational reliability and proactive education.” The Digital-Asset Readiness Framework for Treasury At Treasury Mastermind, we’ve seen growing curiosity among treasurers about how to prepare — not just if they should. Below is a practical self-assessment framework to evaluate your digital-asset readiness in five dimensions: Pillar Key Questions Why It Matters 1. Banking Relationships & Partners Are your core banks exploring digital-asset offerings? Are they regulated for stablecoin custody or blockchain settlement? Future-proofing relationships ensures access to next-generation payment rails without losing oversight. 2. System Integration (ERP / TMS / API) Can your treasury systems connect to digital-asset platforms through APIs? Is your data model flexible enough to handle new asset types? Seamless integration avoids “off-system” processes that create reconciliation risk. 3. Risk & Compliance Framework Does your policy cover digital-asset transactions, KYC, AML, and sanctions screening? Early policy alignment avoids governance gaps once pilot projects begin. 4. Accounting & Reporting Do finance and audit teams understand how to classify stablecoins under IFRS/GAAP? Accounting clarity prevents reporting delays and misstatements. 5. Capability & Knowledge Does your team understand wallet security, private keys, and digital custody? Treasury talent must evolve alongside technology. Training and awareness are essential. Treasuries scoring low on these dimensions don’t need to jump in immediately — but they should start conversations, test internal processes, and engage with banks piloting these capabilities. Lorena noted: “Both corporates and banks must prepare the foundation. This isn’t about moving today — it’s about being ready when the market standard shifts: accounting, risk and compliance, treasury systems, and team capabilities.” A Measured but Inevitable Shift The Citi–Coinbase partnership doesn’t turn every treasurer into a blockchain enthusiast overnight. But it’s another sign that digital-asset infrastructure is moving from the edge to the core of institutional finance. For now, the most pragmatic approach is to observe, learn, and prepare. Map where digital payments could add value, ensure your governance can accommodate them, and engage your banking partners about their roadmaps. Kortam added: “Only a dual focus on technological integration and proactive education will pave the way for broader acceptance of stablecoins as a viable, efficient tool in modern treasury…