Uber has completed a blockchain-based treasury cash management pilot with HSBC and Franklin Templeton, generating an additional 1.5 days of yield over the weekend. The pilot leveraged the Canton blockchain network to keep corporate cash earning interest while conventional financial markets were closed.
The organizers clarified the scope of this achievement: the 1.5 days refers to the duration of extra yield generation, not a 1.5% profit margin or an increase in annual interest rates. The nominal amount of funds deployed by Uber in this pilot was not disclosed to the public.
The main takeaway from the experiment is not the volume of funds deployed, but rather how distributed ledger technology bridges the operational downtime of conventional banking.
How Cash Earns Interest When Markets Are Closed
Under the trial framework, Uber purchased investment instruments on Thursday and liquidated them on Sunday. The corporate cash earned extra interest because the funds remained invested while conventional financial markets had already shut down trading activities on Friday afternoon.
The transaction mechanism operated by utilizing HSBC’s tokenized bank deposits to purchase tokenized money market fund products issued by Franklin Templeton. The Canton blockchain network facilitated liquidity and transaction settlement, supported by participation from Tradeweb and Fireblocks.
The integration between tokenized deposits and money market funds enabled asset ownership transfers and liquidity execution without having to wait for bank operating hours to open on Monday morning.
Six Jurisdictions Covered and an 18-Month Target
Manish Kohli, Head of Global Liquidity at HSBC, stated that the pilot with Uber demonstrated the technical readiness of the designed system. Following these results, HSBC plans to open service access to corporate clients in the United States and expand partnership options with other asset managers.
HSBC’s tokenized deposit offering, the Tokenised Deposit Service, currently operates across six jurisdictions: Hong Kong, Singapore, Luxembourg, the United Kingdom, the United States, and the United Arab Emirates. The infrastructure supports seven currencies, including the US dollar (USD), euro (EUR), British pound (GBP), Hong Kong dollar (HKD), Singapore dollar (SGD), offshore yuan (CNH), and UAE dirham (AED).
On the infrastructure front, Fireblocks CEO Michael Shaulov projected that hundreds of global corporations will adopt blockchain-based cash management models within the next 18 months.
For corporate treasurers and institutional cash managers, Uber’s pilot proves that weekends no longer need to be yield-free waiting periods. As banking instruments and mutual funds transition to blockchain networks, idle cash time can be transformed into interest-bearing duration.
Reported by crypto.news.
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