The Role of Currency Management in the Ecosystem Economy
This article is written by Kantox As financial services are more and more embedded into platforms that provide a one-stop shop experience for clients, there are still gaps where currency management can bring great value. Discover the role of currency management in the realm of fintechs and how it can shape the ecosystem economy. The breakneck performance of leading technology stocks this year is widely attributed to macroeconomic factors such as receding inflation expectations and a pause in short-term interest rate increases in the United States. But here’s another possible explanation: investors are rallying —no pun intended— around the new Ecosystem Economy. This emerging ‘Ecosystem Economy’ is analysed in a book by Venkat Atluri & Miklós Dietz. The Ecosystem Economy. How to Lead in the New Age of Sectors without Borders. According to the authors, the barriers between traditional sectors of the economy are coming down. Instead, large platform companies are reorganising traditional sectors by focusing, like never before, on technology-empowered customers. These (impatient) consumers are now firmly in command. Wherever they go, they seek one-stop shopping experiences to satisfy their changing and ever-expanding needs. All in all, Atluri and Dietz estimate $80 trillion in revenue flowing to small, medium and large ecosystem players in the coming decade or so. This exciting scenario is filled with opportunities for fintech companies as they find their place in the new economic landscape. The emergence of global ecosystems Global ecosystems, according to the authors, will be centred around two types of needs. On the one hand, individual human needs will be addressed in areas like Travel, Home, Commerce, Talent, Mobility and Wealth. On the other hand, B2B services like SMEs and Enterprise services will also be targeted. The companies involved will act either as large ‘ecosystem orchestrators’ or as smaller partners/competitors. Take the so-called Home ecosystem. This area is already operating through platforms that include real estate and rental search engines and online services for inspection, appraisal, moving, renovation, legal issues, decoration and maintenance. Needless to say, this one-stop shopping experience is incomplete without financial services like financing and insurance. As financial services become embedded into most ecosystem platforms, a broad process of ‘fintechisation’ is gaining ground. It will only gather momentum. Astute participants will identify ‘ecosystem gaps’ and move to fill them. Here’s one such gap: currency management. Let’s analyse the role of currency management in this ecosystem economy that is taking shape. The role of currency management Consider the following ‘ecosystems’, and how automated currency management can help fintechs play a decisive role: Enterprise sector: Services to large companies encompass M&A, treasury management, treasury technology infrastructure, long-term funding, strategy consulting and risk management. ⇒ Potential FX-related improvement: in-house FX services to optimise currency management between headquarters/subsidiaries, including netting opportunities. Small and Medium-sized companies: Neobanks are serving the financial needs of micro-businesses and SMEs by offering business cards, invoice management, expense management and bookkeeping and recording. ⇒ Potential FX-related improvement: seamless FX markets operations in different currencies with easy implementation via APIs. Travel: Participants are scrambling to bring many different customer needs—flights, hotels, conferences, events, tickets and others—under one place. Increasingly, this involves embedded financial solutions like payments, insurance, rentals and financing. ⇒ Potential FX-related improvement: embedded SWIFT and SEPA international payments in dozens of currency pairs. Commerce: Retail purchasing needs are increasingly addressed through ‘buy now pay later’ (BNPL) solutions and digital marketplaces with goods and services offered in seamless packages of payments solutions, consumer loans and loyalty programmes. ⇒ Potential FX-related improvement: guaranteed FX markets rates during predetermined time lapses. A broad reorganisation There are, quite obviously, a number of risks involved in the emerging global ecosystem economy. One such risk stems from unnerving geopolitical developments and their potential implications in terms of ‘de-risking’, supply chain disruption and broad changes in the regulatory environment. If, however, the business reorganisation centred around the customer proceeds along the lines suggested by the authors of the Ecosystem Economy, there would be opportunities for fintech companies to cover the financial aspects of the immense range of offerings that will be on display. And, like it or not, we live in a multi-currency world. In other words, ‘fintechisation’ goes hand in hand with automated currency management solutions.The time to act is now. Also Read Join our Treasury Community Treasury Masterminds 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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The Stablecoin Reality Check: Unlocking Liquidity or Just Relocating the Traps?
Written by Sharyn Tan (Views are my own) In the ever-evolving world of finance, stablecoins have emerged as a beacon of hope for revolutionizing payments and liquidity management. Often touted as the “future of money,” these digital assets pegged to fiat currencies like the US dollar promise to bridge the gap between traditional finance and the blockchain era. But from a treasurer’s perspective, the burning question remains: Do stablecoins truly unlock stuck liquidity, making capital more accessible and efficient, or do they merely accelerate its movement while shifting where it gets stuck? This debate isn’t just academic—it’s central to how corporations manage working capital in a globalized, 24/7 economy. Let’s dive deeper. Stablecoins, such as USDT, USDC, and newer entrants like PYUSD backed by regulated institutions, are designed to maintain a stable value, making them ideal for transactions without the volatility of cryptocurrencies like Bitcoin. Their growth has been explosive: as of late 2025, the total market capitalization of stablecoins has surpassed $300 billion, with daily trading volumes often rivaling those of major fiat currencies. Proponents argue they represent a seismic shift in settlement infrastructure, offering always-on availability, blockchain transparency, and smart contract programmability—features that traditional banking rails, like SWIFT or ACH, have struggled to combine effectively. From a treasurer’s lens, this sounds transformative. Imagine a world where cross-border payments settle in seconds rather than days, reducing the infamous “float” that ties up billions in corporate treasuries annually. Stablecoins could minimize prefunding requirements, where companies must hold excess cash in accounts to cover potential delays or failures in transactions. Real-time visibility across markets would allow treasurers to optimize cash positions dynamically, turning payments into a strategic tool for liquidity management rather than a mere operational chore. In surveys of banking professionals, faster settlements rank as the top benefit of stablecoin adoption, cited by nearly half of respondents, followed closely by improved liquidity access. But here’s where the debate heats up: Are stablecoins genuinely freeing liquidity from its traditional traps, or are they just relocating those traps to new silos within the crypto ecosystem? The Case for Unlocking Liquidity: A Revolution in Motion On the optimistic side, stablecoins are seen as “better money” that enhances velocity—the speed at which capital circulates through the economy. Unlike bank deposits, which are often locked in low-yield accounts or subject to banking hours and holidays, stablecoins operate on decentralized networks that never sleep. This always-on nature can unlock trillions in “stuck” assets, such as those in real-world asset (RWA) tokenization, where illiquid properties or commodities become tradable fractions on-chain. For treasurers, this could mean pooling cash across borders without the friction of currency conversions, where regulatory permitted, boosting capital efficiency and reducing exposure to float risk. Stablecoins, integrated with payment platforms, enable real-time settlements using on-chain liquidity, where collateral like RWAs or yield-bearing assets keeps earning returns even while in use. This “split-yield” architecture, as seen in innovative protocols like STBL, separates principal from returns, ensuring liquidity isn’t sacrificed for yield. In DeFi applications, stablecoins provide the backbone for lending and borrowing, where AI-driven agents can automate arbitrage, routing, and yield allocation, turning idle capital into productive assets. Moreover, with regulated players like J.P. Morgan, Citibank and PineBridge entering the space, stablecoins are gaining treasury-grade compliance, making them viable for institutional use. This could lead to a “liquidity revolution,” where stablecoins not only speed up money but make it smarter, integrating with broader strategies like tokenized treasuries or possibly even government-backed digital stimuli. As some experts suggest, their real value lies in the opportunities for creating complementary business models that export digital dollars globally, enhancing sovereignty and credit creation. The Counterargument: Just Moving the Traps Faster Skeptics, however, argue that stablecoins don’t unlock liquidity—they simply relocate where it gets trapped, often in opaque or fragmented ecosystems. While they promise daily liquidity, many are backed by assets that aren’t always easily sold, echoing the risks of uninsured bank deposits. Historical parallels to national bank notes from the 19th century highlight this: stablecoins, like those notes, rely on issuer credibility, but without universal deposit insurance or capital buffers, they can amplify systemic risks during market stress. Interoperability remains a major hurdle. Liquidity in stablecoins is often siloed within specific blockchains or protocols, requiring bridges or swaps that introduce fees, delays, and counterparty risks—essentially recreating the prefunding traps of traditional finance but in a digital guise. For instance, while DeFi liquidity pools sound innovative, they’ve seen massive outflows when incentives dry up, with LP tokens rotating into other assets but not truly freeing capital for real-world use. Regulatory uncertainties add another layer: in jurisdictions without clear frameworks, stablecoins can trap liquidity in compliance limbo, limiting their scalability. Critics also point out that stablecoins’ current scale isn’t sufficient to drive broad market movements, with turnover still dwarfed by fiat systems. In treasury contexts, holding stablecoins might benchmark well against operations checklists for execution and routing, but it doesn’t eliminate the need for traditional buffers against volatility or redemption runs. A Treasurer’s Balanced Take: From Experiment to Operational Model As treasurers, we must navigate this debate pragmatically. Stablecoins aren’t a cure-all, but they offer tools for smarter liquidity when integrated thoughtfully. Start by assessing how they fit into your working capital strategy: Use them for high-frequency, low-value payments to test waters, then scale to other treasury operations like yield-optimized holdings or RWA-backed lending. The key is diversification—don’t let liquidity get trapped in one ecosystem; leverage multichain protocols for seamless flow. The exciting developments? With confidential smart contracts and AI agents enhancing privacy and automation, stablecoins are evolving beyond mere efficiency tools. Regulated innovations could tip the scales toward a true revolution, especially if they address the traps through better compliance and liquidity routing. So, what’s your view? Are stablecoins just an efficiency tweak, relocating liquidity traps at higher speeds, or the dawn of a liquidity revolution that frees capital for good? Lorena Pérez Sandroni, Treasury Masterminds Board Member, Comments Stablecoins in my opinion are more than an efficiency tweak. They solve real pain points:speed, transparency, programmability . But they also introduce new…