Inside Treasury’s Debt Dilemma—and How to Tackle It With Confidence
This article is written by Palm Treasury teams don’t just manage cash. They manage complexity — and few things are more complex, and operationally demanding, than debt management. What starts as a practical financing approach — taking on a few loans to fund growth or stabilize liquidity — often turns into a sprawling network of financial obligations. It’s not unusual for treasury teams to manage dozens of loans across institutions, each with their own terms, rates, and covenants. When treasury teams manage dozens of loans across different maturities and interest rates, they often face fragmented debt management, operational overload, and scattered data across disconnected systems — risking missed payments, covenant breaches, and the consequences of loan defaults, credit rating drops, or public market fallout. This isn’t just a data issue. It’s an operational strain with strategic consequences. The Compounding Complexity of Debt Debt operations often evolve faster than the systems built to manage them. A few tactical loans can quickly spiral into a time-intensive burden. Tracking obligations is just the start; managing their growing ripple effects across the business is where complexity compounds. Each loan brings its own terms, rates, maturities, and covenants. A small oversight can have big consequences. And even when each loan is manageable alone, together they create a workload that demands constant vigilance. Add in shifting market conditions, stricter lender terms, and rising expectations from internal stakeholders, and debt turns from a supporting tool into a defining factor in how treasury teams perform. One loan? A spreadsheet works. Ten loans? You’re checking calendars. Fifty loans? You’re at risk of missing something important — not because the team isn’t skilled, but because the system wasn’t built for it. As loan volume grows, treasury teams face: This leads to a constant juggling of inputs and subsequent outputs. And in practice, even highly competent teams find themselves spending more time managing process than optimizing outcomes. What Treasury Teams Want to Avoid The stress of managing debt manually doesn’t just wear on time and resources — it wears on confidence. If repayments are missed or covenants are breached, the consequences escalate quickly. Lenders lose trust. Credit ratings are impacted. Risk od defaults. Internal stakeholders question reporting accuracy. And in today’s environment — where interest rates move faster, lender terms are stricter, and treasury teams are leaner — there’s little room for error. This operational overload creates serious risk that can waterfall: These aren’t edge cases. They’re common enough to make treasurers feel like they’re operating one step behind — all while CFOs demand sharper insights and faster reporting. Treasury’s credibility hinges on its ability to see what’s ahead and act early. Without the right infrastructure, that visibility collapses. What Better Looks Like A better approach doesn’t mean overhauling everything — it means integrating debt where it matters most. By folding debt directly into liquidity planning and reporting workflows, treasury teams unlock a smarter, more scalable strategy: With debt positioned as a core driver in your planning — not a side ledger — treasurers can make better decisions, sooner. They’re routine decisions — powered by accurate, integrated data. A more scalable, structured approach isn’t a luxury — it’s a necessity. When debt becomes part of the forecasting layer, treasury regains control. Instead of operating in the rearview mirror, teams can anticipate, model, and respond. The good news? There’s a clear fix — and it starts by bringing debt into the forecasting layer. That means: When debt lives inside your forecasting system — not adjacent to it — treasury teams unlock clarity. They can prioritize, consolidate, and renegotiate with confidence. Conclusion Debt is a powerful lever — but only if it’s managed with foresight. The best way to mitigate risk and regain control is by incorporating repayment schedules directly into your cash forecast and positioning cash accordingly. Smart positioning enables treasury teams to make deliberate, proactive moves: consolidating smaller loans, timing drawdowns with confidence, and renegotiating terms from a place of clarity. Just as importantly, covenants shouldn’t live in offline trackers. They need daily visibility. A central dashboard ensures nothing slips, so treasury leaders can focus on value — not risk response. This shift — from reactive to proactive debt management — is what separates teams that are firefighting from those shaping the future of treasury. The teams that adopt it now will be the ones setting the standard tomorrow. And that transformation begins with understanding where your process stands today. 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. Notice: JavaScript is required for this content.
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From Static Cash to Symphonic Liquidity: Orchestrating the Future with Stablecoins
Written by Sharyn Tan (Views are my own) Picture this: As a corporate treasurer, you’ve spent years fine-tuning the art of cash forecasting—building buffers for the inevitable delays, sweeping funds across borders like a conductor waving a baton at half-speed, and staring at dashboards that only refresh when the banks deign to open their doors. The dream? Instant visibility into every pool of liquidity worldwide. Zero dollars (or euros or yen) sitting idle, earning nothing. And the freedom to redirect capital precisely where it’s needed, the moment it’s needed—no more “T+2” alibis or weekend blackouts. For decades, that vision felt like a cruel tease, confined to glossy consultant decks. But stablecoins? They’re the quiet revolution whispering that it might finally be within reach. From where I sit—deep in the trenches of global treasury strategy—they’re not just another fintech fad. They’re the potential bridge to a world of continuous liquidity orchestration, where cash doesn’t just sit; it flows like a symphony, responsive and relentless. Let’s unpack this. Traditional liquidity management is a masterclass in predictability—or at least, the illusion of it. We rely on batch processes: inflows timed to the second, outflows queued for the next available rail, and everything swept into notional pools that ignore the chaos of cut-off times, holidays, and those pesky interbank handshakes that can drag on for days. It’s efficient enough for a 9-to-5 world, but in our 24/7 global economy? It’s like trying to stream a symphony on dial-up. Enter stablecoins—fiat-pegged digital assets like USDC or PYUSD, engineered for stability and speed. When integrated carefully, regulated and battle-tested, they could settle transactions much faster than many legacy rails, sometimes near-instant. For institutions, this could represent a fundamental rerouting of how liquidity moves. Suddenly, treasurers aren’t just managing positions; we’re orchestrating flows—programming capital to dance between entities, markets, and even yield opportunities in real time. Imagine the possibilities: That excess cash pooling in a European subsidiary at 2 a.m. UTC doesn’t languish; it auto-routes to cover a dawn supplier invoice in Singapore, shrinking your working capital cycle by precious days. Or USD balances in LatAm, tokenized and earning 4-5% in short-term instruments while awaiting the next capex call— all without lifting a finger. Precautionary liquidity buffers? They shrink because funds aren’t trapped by geography or clocks; it’s fluid, on-demand, and always earning its keep. I say possibilities because in reality, cross-jurisdiction FX conversions, capital controls and counterparty checks could still slow things down. Similarly, tokenized assets may unlock yield, but access depend on the asset’s regulatory clarity and risk profile—especially outside the G7. The Real Shift: Not Replacement, But a Hybrid Harmony Don’t get me wrong—stablecoins aren’t here to evict your trusty banking partners. Those relationships? They’re the bedrock: credit lines, compliance muscle, and the kind of trust that’s hard to code into a smart contract overnight. What stablecoins do is extend the orchestra, adding instruments that play faster and louder for the high-velocity parts. Think hybrid liquidity layers: • Traditional rails for the heavy lifting—high-value, regulated, deliberate – ideal for high stakes solos and foundational support. • Stablecoin rails for the agile chorus—low-friction, programmable, eternally awake – responding instantly to urgent cues The treasuries that thrive will blend them seamlessly on a single dashboard, routing flows with the precision of a maestro. One minute, you’re hedging FX exposure via bank APIs; the next, you’re settling intra-group transfers on-chain to dodge weekend voids. It’s not disruption for disruption’s sake—it’s evolution, turning payments from a cost center into a liquidity superpower. But here’s where the rubber meets the blockchain: This isn’t plug-and-play. From my vantage point, piloting these shifts reveals the traps lurking just off-stage—integration snags, systems need tuning, accounting ambiguities, and the ever-present specter of regulatory whiplash. Stablecoins promise freedom, but without the right choreography, they can just relocate your liquidity bottlenecks from boardrooms to blockchains. A Treasurer’s Take: 5 Bold Moves towards Digital Liquidity (2026-2027) As treasurers, we know theory is cheap—execution is the real score. So, let’s talk brass tacks: What would moving toward continuous orchestration look like in practice? Here’s how you could approach it: How Close is the Crescendo? Closer than the skeptics admit, but not quite the full symphony yet. We’ve got the instruments: Scaled, audited stablecoins; institutional custody that’s treasury-tough; and central banks tinkering with tokenized deposits. Still, the gaps echo: Fiat-stablecoin bridges in every currency? I say give it another 18-24 months for the market to catch up. Universal tax clarity? Regulators are warming up, but it’s a slow adagio. And trust in smart-contract automation for non-crypto pros? That’s the finale we need to be composing for now. My bet: By 2028, hybrid stacks will be standard for most multinationals—some hitting the high notes in 2026, with trailblazers already in rehearsal. The question isn’t if continuous liquidity arrives; it’s who will lead the performance, and who will scramble for seats in the orchestra pit. Ready treasurers will move beyond theory and join the jam—building liquid, resilient, and programmable cash stacks for tomorrow’s markets. If you’re sketching hybrid architectures where fiat, stablecoins, and tokenized assets improvise together, let’s tune this thing together. The future of corporate liquidity isn’t a solo; it’s a collaboration waiting for its cue. So, what’s the thorniest trap in your liquidity score right now—regulatory fog, technology silos, or something else? Lorena Pérez Sandroni, Treasury Masterminds Board Member, Comments For me, as I have expressed in other times, stablecoins aren’t about chasing hype. They are about solving a very real speed problem in treasury. I see them as a practical instrument in the liquidity orchestra, especially when we are constantly battling cut-off times, slow FX rails, and capital stuck in limbo. But I stay pragmatic: cross-border FX rules, tax treatment, and uneven regulatory clarity mean you can’t just “go on-chain,” And honestly, the hardest part isn’t the technology—it’s shifting traditional minds that still equate digital assets with speculation. When you’re explaining that you don’t want crypto, you want faster balance-sheet mobility, you can almost feel the cognitive dissonance in the room. But that’s exactly why stablecoins matter: used carefully, they’re a tool for speed, precision, and…
The rise of AI in corporate FX risk management
This article is a contribution from our content partner, MillTech Traditional FX risk management processes are often manual, time-consuming and reliant on outdated tools—making it harder for corporates to respond quickly and efficiently in today’s volatile markets. It’s little wonder, then, that all respondents in our recent North American and UK corporate FX surveys said they are exploring the use of AI in some capacity to improve both operations and decision-making. In this blog, we take a closer look at how corporates across both regions are starting to adopt AI to reduce their reliance on resource-heavy manual tasks, and move towards more intelligent, tech-driven FX solutions. AI as a strategic tool for FX risk management AI is rapidly becoming a strategic priority for corporates on both sides of the Atlantic—especially as firms search for smarter ways to navigate currency volatility. Faced with ongoing geopolitical tensions, diverging monetary policies and a backdrop of macroeconomic challenges, FX risk management is naturally emerging as a key area of interest for innovative technologies. Corporates are beginning to take action: While these numbers reflect consideration rather than full-scale adoption, they signal a clear shift: AI is moving from theory to strategy in the world of corporate treasury. Commenting on the trend, Sam Hunt, CTO at MillTech, affirms: “The genie is well and truly out of the bottle with generative AI and any organisation not thinking about how this technology can enhance their offering risks being left behind. It’s clear from the findings that CFOs realise that in today’s fast-paced digital landscape, embracing AI-driven innovation is no longer optional but essential for staying competitive.” Early-stage exploration beyond risk management Building on this momentum, process automation and FX operations are also emerging as key areas of AI exploration among corporates in both North America and the UK: Together, these trends point to a broader shift: corporates are not only recognising the strategic value of AI, but actively seeking ways to embed it across their FX management strategy. AI use cases in FX According to Justin Xu, Head of Quant and AI Strategy at MillTech, AI is unlocking new levels of precision and control in currency management. Predictive analytics for FX risk management Machine learning algorithms analyse diverse source of information, including historical price movements, macroeconomic indicators, and central bank policies, to predict the direction and magnitude of currency market risks. These insights enable CFOs and treasurers to make more informed hedging decisions, minimizing exposure to currency risk. Natural language processing (NLP) for sentiment analysis NLP-powered AI models process news articles, central bank statements, and social media sentiment to assess market conditions. By extracting insights from both structured and unstructured data sources, corporates can more effectively manage event-related currency risks, thereby gaining a competitive edge in FX risk management decisions. AI-powered process automation Many FX-related tasks, such as trade reconciliation, compliance reporting, and KYC/AML processes, are time-consuming and prone to human error. AI-driven automation tools can help to streamline these workflows, reducing manual effort and improving accuracy. Looking ahead: What’s shaping the future of FX? When it comes to the future of FX operations, corporates on both sides of the Atlantic are placing their bets on emerging technologies—but not always in the same order. In North America, corporates are most optimistic about the impact of automation and data-driven tools, with notable interest in several other technologies: In the UK, corporates are leaning more heavily into blockchain and AI-led transformation: While AI is a consistent theme across regions, the variation in top priorities likely reflects differences in market maturity, regulatory environments and innovation appetite. What’s clear, however, is that FX functions are entering a transformative era—where advanced technologies are shifting from experimental to everyday use in FX strategies. Reimagining FX with AI: Inside MillTech’s next-gen approach At MillTech, we’re applying AI in practical, targeted ways to streamline processes and improve efficiency across the business and for our clients. Smarter compliance through document intelligence To ease the burden of regulatory onboarding, we’ve developed a generative AI solution that accelerates KYC and AML processes with our 15 counterparty banks. By extracting key information from complex legal documents, this tool significantly reduces manual effort and improves accuracy, transforming what was once a time-consuming task into a streamlined workflow. Empowering developers with AI-Driven code search Internally, we’re using generative AI to supercharge our development process. Rather than relying on outdated or scattered documentation, we use generative AI to let developers query the codebase directly, allowing them to retrieve accurate, context-aware answers, saving valuable time. 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.
De-Dollarisation: Why Treasurers Can’t Ignore the Shift (And How to Build a Hedging Strategy That Survives It)
From Treasury Masterminds Every few years, the financial world picks a new buzzword to obsess over. This time it isn’t AI, blockchain or some other magic toy. It’s de-dollarisation. And unlike most corporate folklore, this one actually matters for treasury teams. The US dollar still rules global trade, sure, but its grip isn’t quite what it used to be. Its share of global reserves has slipped 60%, new regional payment rails are emerging, and multinationals are finding themselves invoiced in currencies they didn’t even bother to hedge ten years ago. In other words, treasurers are waking up to a world where FX isn’t a two-currency conversation anymore. What This Means in Real Life This shift isn’t just theory for economists who enjoy writing 200-page papers no one reads. It shows up in the basics: how you price contracts, negotiate payment terms, structure hedges, and manage liquidity across multiple markets. You’re navigating: And through all of that, you’re still expected to keep earnings predictable. Lucky you. Why You Need a Better Hedging Playbook A multipolar currency system doesn’t kill the dollar. It just forces corporates to be smarter. You need a hedging framework that covers more than EUR-USD and a prayer. That means: Companies already transacting outside USD are learning fast. They’re refining execution strategies, diversifying currency pairs, and using digital tools to make cross-border flows faster, cheaper, and more transparent. Treasurers who cling to old assumptions about the dollar? They’re already behind. A Webinar Designed to Help You Catch Up To make sure you’re not one of those treasurers still stuck in 2015, Treasury Masterminds is teaming up with Ebury for a live 45-minute session built around one simple goal: helping you design a hedging strategy that actually works in a de-dollarising world. You’ll learn: You’ll also walk away with Ebury’s Looking Beyond the Dollar playbook, because sometimes even treasurers deserve free gifts. Who Should Join? If your job includes anything like “treasury,” “liquidity,” “hedging,” “FX,” “working capital,” or “trying to sleep despite currency volatility,” this session is for you. That includes: Meet the Speakers If you want your hedging strategy to survive the next stage of global realignment, join us on 11 December 2025 at 11:00 CET. Also Read 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.
FinTech Interview with Theo Wasserberg, Head of UK&I at Embat
This article is a contribution from our partner, Embat Theo Wasserberg, Head of UK&I at Embat, shares how AI and real-time data are transforming treasury management and shaping the future of finance. Theo Wasserberg, Head of UK&I at Embat Theo Wasserberg is Head of UK and Ireland at Embat. He leads the market strategy, customer partnerships and growth in the UK and Ireland. He has a strong background in enterprise software and spent five years at SAP, where he worked closely with ERP customers on banking and reconciliation solutions. He also led strategy for a leading ERP partner, helping CFOs navigate digital transformation across Europe. He completed his MBA at INSEAD in 2024. Theo, what pivotal moments shaped your journey into fintech and treasury management, and what continues to inspire you in this space?Earlier in my career, I worked with SAP and major implementation partners, delivering finance systems for large enterprises. During that time, I did a piece of work looking at the cost and time required to implement traditional treasury systems. It often took about 15 months and substantial investment to build the required capabilities. Embat can deliver these in a fraction of that time and cost. I realised that mid-market firms were particularly underserved – too large for basic tools, but not large enough for the expensive, complex legacy systems. That gap in the market and the opportunity to genuinely revolutionise treasury management continue to inspire me. During my MBA, I was a founding member of an AI club, where students and businesses would come together to discuss AI’s practical applications across different industries. That experience shaped my conviction that AI is fundamentally a problem-solver, not just a technology trend. Treasury systems are particularly ripe for AI transformation. Today, leading an AI-native business at a time of critical industry transformation feels like the natural culmination of that journey. The first quarter of this century redefined what was possible – driven by the democratisation of access, the rise of automation, and the relentless removal of friction. The next quarter will be shaped by something deeper: data that learns, intelligence that anticipates, and systems that think alongside us. The question isn’t if you need to modernise, it’s how fast. How are current macroeconomic pressures—like rising interest rates and inflation—reshaping the treasury needs of medium and large businesses in the UK?The macroeconomic environment has elevated the role of the treasurer. Rising interest rates, currency fluctuations, and inflation mean that cash management has become critical. Modern treasurers and CFOs are at the centre of the strategy and decision-making process. Delayed data is a risk. Businesses can no longer rely on old systems that only give a snapshot of data once a week and spend hours, if not days, sifting through Excel documents. Embat is helping to revolutionise the move to real-time visibility, management and intelligence. The companies that thrive are those using dynamic data to make faster, more informed decisions about liquidity, hedging, and investment In what ways is Embat’s platform revolutionising how companies centralise cash, accounting, and payments? How do you see this evolving in the next 3-5 years?Traditionally, treasury teams have been drowning in spreadsheets and week-old data, downloading bank statements weekly and reconciling transactions by hand. For a junior team member, that could account for a large portion of their working week. Embat changes that by connecting data in real-time and using AI to automate repetitive work. Instead of looking backwards, finance teams can now see their positions instantly and make strategic decisions proactively. Over the next few years, this will evolve even further with deeper ERP integrations, near-instant reconciliations, and predictive forecasting that make finance operations almost fully automated. Tell us about TellMe, Embat’s AI-powered treasury analyst. How is AI transforming treasury operations and finance teams’ workflows?Traditional reconciliation systems break the moment things get complex. TellMe is transformative. It’s already in use with our customers. It sits at the core of Embat’s platform and layers AI onto real-time data. That combination moves teams from simply recording what’s happened to understanding what’s happening now, and predicting what comes next. For example, in bank reconciliation, traditional systems depend on rigid rules and break easily when faced with non-standard cases. TellMe’s AI recognises patterns, tolerates small variances, and automatically matches payments, even when they don’t fit a standard template. It also forecasts cash flows, identifying trends and seasonality, so teams can plan more effectively. How do emerging regulations like PSD3 and open banking maturity influence treasury operations, and why is real-time cash visibility more crucial than ever?As PSD3 reshapes data-sharing rules, open banking reaches maturity, and real-time payments and intelligence become the norm, the gaps exposed in that Thursday-afternoon scramble – delays, blind spots, and manual workarounds – will only widen. The shift from compliance to capability is accelerating. Instant payments are now table stakes; what differentiates leading finance teams is how clearly and automatically they understand their cash position in real time. PSD3 enhances API standards, improves fraud data-sharing, and strengthens liability frameworks, all of which drive a need for greater transparency and control. Finance teams must now connect directly to their banks and ERPs in real-time, removing the lag between transaction and insight. Finance teams don’t just need to move money fast; they need to understand and steer their cash position in real-time, directly from their ERP. That means no delays in reconciliation, no black boxes, and no legacy drag. With AI automating routine tasks, how do you envision the role of finance professionals changing in strategy and decision-making?AI removes the time-consuming operational burden – tasks like matching transactions or compiling reports – so teams can concentrate on future cash flows, funding models, and scenario planning. This shift also allows finance to respond in real-time to changes in the market. In short, automation liberates people from process, so they can become true strategic partners to the business. Scenario modelling, risk management, and horizon scanning are areas where the benefits will become more apparent with AI. I don’t have to spend hours or days doing…
How Bitcoin treasuries are transforming corporate finance
This article is written by Fortris Spreadsheets shaped the 1980s, ERP systems defined the 2000s, and today, digital assets are transforming corporate finance. Bitcoin and other cryptocurrencies have quickly moved into the heart of treasury operations, setting a new standard for companies that want to stay ahead. The shift isn’t only about holding a new asset. It’s about how treasurers approach liquidity, risk and global payments. Well-run bitcoin treasuries can strengthen the balance sheet, open new payment rails, and give finance teams more flexibility in a volatile economy. So how can your treasury team handle the complexities of Bitcoin, Ethereum and stablecoins without adding extra risk or work? What is a corporate crypto treasury? Put simply, a corporate crypto treasury solution brings your work on managing cash and investments into the world of digital assets. Alongside dollars, euros and other fiat currencies, treasurers now manage Bitcoin, Ethereum and stablecoins like USDT and USDC. That means new responsibilities: A well managed crypto treasury gives your company more flexibility, smoother cross-border payments, and faster reconciliation. How to choose a crypto treasury solution A strong treasury in digital assets takes more than just buying Bitcoin. The systems and processes behind the scenes shape how efficiently your treasury runs, and can often make the difference between smooth operations and constant headaches. Here are the features you should be looking for: Multi-Currency Support Most companies don’t stick to one asset. A modern crypto treasury has to manage Bitcoin, Ethereum and stablecoins, with the ability to move between them seamlessly. Look for tools that allow your team to manage multiple cryptocurrencies in one place to avoid adding complexity to your workflow. Security and Compliance Digital assets must be stored securely, whether custodial or self-custody. At the same time, finance teams also need audit trails and clear reporting. Choose a solid treasury solution that provides strong digital asset custody, and combines strict access controls with records that are easy to export. Security can’t be optional, but it also shouldn’t make day-to-day tasks harder. Automated Sweeps and Consolidation In crypto treasury, deposits arrive at multiple wallet addresses to keep your funds secure. Without automation, treasurers waste hours tracking and reconciling deposits. Automated sweeps move your funds from individual addresses into a main wallet, reducing unnecessary risk whilst keeping transaction fees (known as gas fees in the digital asset space) low. Reporting and Analytics Data only helps if it’s clear. Dashboards that track inflows, outflows and key performance indicators give treasurers confidence in their decisions. Audit-ready reports make compliance and executive conversations much easier. Integration with Payments and Accounting Treasury doesn’t sit in isolation. It connects to payables, receivables, payroll and sometimes even customer payments. The best crypto treasury solutions integrate with accounting and payments so digital assets can be part of everyday operations, not just reserves on a balance sheet. How Bitcoin treasuries are changing corporate finance It is no longer curiosity alone driving forward-thinking treasurers towards crypto treasuries. Real, material, tangible benefits have transitioned from the hypothetical to the proven: For many treasury teams, adding crypto is about gaining flexibility and creating more options when navigating an unpredictable economy. The treasuries that manage digital assets effectively are the ones giving their finance teams the clearest view and most control. 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. Notice: JavaScript is required for this content.
Prefunding — The Silent Cost of Speed
Written by Sharyn Tan (Views are my own) Faster payments sound like pure upside: instant settlement, happier suppliers, smoother cash-flow forecasting. But every corporate treasurer knows the hidden catch—the faster you need to pay, the more cash you have to park upfront. This is the paradox of prefunding, and it’s one of the biggest silent drags on working capital today. Let’s unpack why prefunding exists, why skeptics rightly push back on “magic” fixes, and how stablecoins and tokenized deposits could deliver measurable relief—without asking treasurers to take blind leaps of faith. Why Prefunding Hurts (and Why It Won’t Disappear Overnight) When you send a cross-border payment today, someone—usually your bank or a correspondent—has to hold local currency in the destination market before the payment can be credited. That’s prefunding. Multiply that across 20+ currencies, multiple payment rails (SWIFT, SEPA, FPS, SPEI, etc.), and different cut-off times, and you quickly end up with hundreds of millions (or billions) immobilised. The Pain Is Real—and Quantifiable Prefunding exists because payment systems weren’t built for a 24/7 world. Local rails have cut-offs, weekends, and holidays. To guarantee a supplier in Mexico gets paid on Friday afternoon CET, someone has to get MXN to the local account days in advance. Recent benchmarks: In a 5% interest-rate environment, every €100m sitting idle costs €5m a year in lost yield. That’s real money. Why Many Treasurers Remain (Rightly) Cautious I’ve sat in enough risk-committee meetings to know the objections by heart. They aren’t “blockchain FUD”—they are legitimate governance concerns: These aren’t trivial hurdles. Any treasurer who waves them away hasn’t spent enough time with group risk or internal audit. Where Evidence Suggests Progress Is Possible That said, the landscape in 2025 looks different from what it was in 2018. A few developments are worth watching—not as 100% proven solutions, but as signals that the industry is trying to address the concerns above: None of these examples means your company should flip a switch tomorrow. They simply show that some risk-tolerant, well-resourced players have moved beyond pilots. A Pragmatic, Low-Regret Path Forward (If You Choose to Explore) If you’re curious but cautious, here’s a sequence that minimizes irreversible commitments: Treasurer’s Take (With Full Disclosure) I haven’t run a complete end-to-end stablecoin loop inside a large corporate treasury: from digitized short-term investments → cross-border payment → supplier receipt → cash concentration back into investments, and I’m not here to claim the technology is production-ready for every treasury. Prefunding isn’t evil—it’s been the duct tape holding global payments together. But duct tape gets expensive at scale. Stablecoins and tokenized deposits aren’t science experiments anymore; they’re regulated, auditable, and already cheaper than the status quo in many corridors. Whether they succeed at scale remains an open question. But the conversation is shifting slowly from “Will this ever work?” to “Under what conditions, and for whom?” The winners won’t be the companies that adopt stablecoins or tokenized deposits for the sake of it. They’ll be the ones that treat digital settlement assets as another cash-equivalent tool—right alongside Fedwire, CHIPS, and SEPA Instant—and govern them with the same rigor. 🤠Let’s Share Realistic Perspectives How are you managing prefunding today? I’d especially value hearing from anyone who has tried and then walked away—those stories are just as useful as the success ones. Drop a comment if you’re open to swapping notes anonymously. No sales pitches, no hype—just treasurers comparing scars and scorecards. Bojan Belejkovski, Treasury Masterminds Board Member, Comments I’m in the “watching closely, testing nothing yet” camp because most of it, at least today, is hype. The prefunding problem is real – I’ve seen enough treasury operations to know cash sitting in nostro accounts “just in case” adds up fast. The opportunity cost in a high interest environment isn’t theoretical. What would actually move me from observer to pilot mode? Two things. First, I’d want to see bank-issued tokenized deposits gain real traction, not just press releases, but actual operational proof from corporate peers. If banks launched a programmable deposit product that carried the same legal and regulatory treatment as my existing deposits, that’s a different conversation. The counterparty risk profile matters more. Second, I need to see the full operational picture beyond just the payment rail. How does month-end close actually work? What did the first audit cycle look like? Did treasury headcount go up or down after implementation? Those are the details that matter when you’re pitching this to a CFO or risk committee. Right now, the smarter play seems to be optimizing what already exists – virtual account structures, instant payment rails, better cash concentration protocols. It’s not revolutionary, but it’s also not introducing new dependencies or regulatory uncertainty. The question I keep coming back to: are stablecoins solving a payments problem, or are they solving a liquidity management problem? Because those require very different governance frameworks. I’m open to being convinced, but I’d rather be 12 months late with the right controls than 12 months early with a compliance headache. Also Read 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.
From risk to resilience: why bank connectivity is now a CFO mandate
This article is a contribution from our content partner, Kyriba In a landscape where financial operations are as vulnerable to digital disruption as they are to economic shocks, secure bank connectivity is becoming a new pillar of corporate resilience. As CFOs shoulder broader responsibilities in safeguarding both assets and reputation, the risk of outdated connectivity now rivals traditional market risks. Security and privacy are no longer back-office concerns—they are central to boardroom strategy. In fact, 76% of CFOs now rank them ahead of inflation and market volatility, signaling a major pivot in finance leadership priorities. State of the market: Risk radar for CFOs The financial landscape is changing rapidly, and so are the threats. According to recent industry data, nearly 90% of U.S. companies faced payment fraud attempts in 2025, with AI-powered scams like deepfakes fueling a staggering 118% year-over-year increase. Manual verification methods and disconnected bank processes are no longer sufficient barriers against these sophisticated attacks. Meanwhile, regulatory scrutiny is intensifying. New mandates around transparency, sanctions, and real-time reporting are raising the stakes for compliance. Organizations relying on outdated, fragmented connectivity risk not only operational disruption, but also reputational damage and costly penalties. But it’s not just about risk. The ability to move money confidently, forecast liquidity accurately, and respond quickly to market events is now a defining factor in corporate resilience. Forward-looking CFOs are seizing this moment to transform their foundations, turning secure bank connectivity into a driver of agility and growth. While CFOs are increasingly aware of these external threats, many are overlooking a critical vulnerability much closer to home: their own bank connectivity infrastructure. Even as CFOs fortify defenses against external fraud and regulatory scrutiny, a more insidious risk often goes unnoticed within their own operations. Many organizations still rely on: While most discussions around cybersecurity focus on external threats such as cyberattacks or data breaches, CFOs often overlook another critical risk vector within their own operations: outdated and fragmented bank connectivity processes. Maintaining legacy bank connections is no longer just an IT headache—it’s an existential risk for the modern CFO. What once seemed like a technical detail now shapes the organization’s exposure to fraud, compliance penalties, and operational disruption. Here’s why: Manual, fragmented processes are ripe for exploitation by today’s sophisticated threat actors. Internal gaps and disconnected systems make it easier for fraudulent transactions to go unnoticed, introduce compliance failures, and create operational delays, especially during periods of market or geopolitical stress. CFOs can no longer afford to treat fraud as an isolated event. Robust, real-time validation and compliance tools are now essential weapons in the treasury arsenal. The good news? Forward-thinking CFOs are recognizing that modernizing bank connectivity isn’t just about risk mitigation—it’s about transformation. The strategic advantage of modern bank connectivity Upgrading connectivity is not just about plugging security holes. Modern, unified connectivity delivers: In a world of volatile FX, rising rates, and political risk, these advantages are not just operational, they’re strategic. This is where a strategic approach to connectivity becomes essential. Rather than continuing to patch legacy systems, leading organizations are embracing a fundamentally different model. How BCaaS reduces complexity and builds confidence Bank-Connectivity-as-a-Service (BCaaS) is designed to address these risks and inefficiencies head-on. BCaaS isn’t just a technical upgrade; it’s a strategic move that allows CFOs to future-proof their organizations against rapidly evolving threats. The question isn’t whether to modernize bank connectivity, but how quickly you can make the transition. Here’s what industry leaders are prioritizing: What leading CFOs are doing now CFOs leveraging centralized, managed bank connectivity and automated payment validation are better positioned to: To build resilience and stay ahead of fast-evolving risks, CFOs should: Where is bank connectivity headed? Looking ahead to the next 12–24 months, the role of bank connectivity will only intensify: In the coming year, CFOs who proactively modernize their bank connectivity will set a new standard for agility and resilience, transforming financial operations from a point of vulnerability into a source of strategic strength. Why secure bank connectivity is a strategic imperative Today’s CFOs are balancing increasing financial complexity with digital risk mitigation. With secure connectivity and automated fraud validation, CFOs can unlock new opportunities for growth, stability, and agility in an unpredictable landscape. In the end, risk is inevitable, but resilience is a choice. By transforming fragmented bank connections into a unified, secure foundation, CFOs can turn their greatest vulnerabilities into their most powerful assets. The organizations that invest in future-proof connectivity today will be the ones that lead with confidence, and emerge stronger, no matter what tomorrow brings. Investing in secure connectivity and future-proof fraud prevention isn’t just about protecting assets. It’s about enabling growth, agility, and peace of mind in an unpredictable world. 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.
The Rise of Alternative Payment Rails: What Treasurers Should Know About Thunes–MoMo and TerraPay Xend
From Treasury Masterminds Corporate treasurers love stability, but the payments infrastructure clearly didn’t get the memo. Over the past year, a different type of cross-border network has been creeping into the spotlight — one built not on correspondent banks, but on mobile wallets, interoperability layers and real-time settlement rails. Two developments stand out right now: You don’t have to like the hype, but you should understand what it means. Thunes + MoMo: Real-Time Cross-Border Payments Into Nigeria Nigeria is one of the biggest remittance corridors in the world, and also one of the toughest for corporates managing payouts, refunds or supplier payments. Traditional correspondent-banking paths into the country often run on limited windows, slow clearing, and unpredictable end-to-end fees. Thunes and MoMo PSB are trying to break that pattern by connecting global send corridors directly into millions of mobile-wallet users in Nigeria with real-time settlement. Why this matters for corporate treasury This isn’t just a consumer remittance upgrade. It’s a signal: Africa’s payment corridors are modernising from the outside in. TerraPay’s Xend Network: The Interoperability Push TerraPay’s new Xend network positions itself as a global payments-interoperability layer, linking banks, mobile-money schemes, wallets and fintech platforms. The pitch is simple: one connection, many endpoints. If this sounds like the modernised, API-first cousin of traditional clearing networks… it basically is. What Xend wants to solve Xend aims to function as the connective tissue, the “universal adaptor” treasurers secretly wish existed. Why it matters for corporates If Xend scales, it could become part of the treasury conversation whenever companies evaluate multi-rail payment strategies. The Bigger Picture: A Parallel System Is Forming Treasurers are now quietly dealing with two payment worlds: The second category used to be an afterthought. Not anymore. What Treasurers Should Do Now Also Read 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.