Investing spare liquidity is one of the biggest problems for corporate treasury departments today – little or no returns or even negative returns. Not only that, a report in the Financial Times quotes Matt Oomen, global head of distribution at BNY Mellon Investment Management, said “supertanker trends”, such as AI and climate change, pose big challenges for the investment community. The whole industry is in flux, we are in uncharted ways of investing, but the one feature that remains constant is corporates need for seamless access to markets and investors. This is where TreasurySpring comes in with their Fixed-Term Fund (FTF) platform which employs a completely new financial instrument, conceived, designed and built by TreasurySpring, to unlock the multi-trillion dollar wholesale money markets by providing new digital pipelines to connect cash-rich firms to institutional borrowers from the sovereign, bank and corporate sectors. 

Managing funding

All fintechs need adequate funding, not too much, not too little to support their growth as they build the new technology and support teams, etc. So TreasurySpring’s announcement of the closing of its latest capital raise, securing £2m of investment in a round that was led by ETFS Capital, with participation from MMC Ventures and existing investors was good news for the TreasurySpring platform. 

Kevin Cook, CEO, commented:

• "Closing this funding round marks another important step in our growth. For the last two years, we have been focused on building a robust and scale-able foundation for the business, whilst proving that our unique Fixed-Term Fund platform adds value to both cash investors and short-term borrowers from the corporate space and beyond. Now that we have achieved those objectives, our priorities are to build out our exceptional team and accelerate the growth of our client-base on both sides of our platform.
• We are still early in our evolution as a business but we feel that we now have all of the necessary components in place to achieve our aspiration of growing into the leading financial technology company in our field."

FTFs provide new way of investing

FTFs enable all holders of large cash balances, from corporates to charities, private funds to insurance companies, family offices to private banks and beyond, to reduce and diversify risk on those balances, whilst simultaneously increasing returns. What TreasurySpring does in the FTF is to put a sort of “fund wrapper” round the source of the fund so it can be sold as a security. This enables companies or organisations that cannot buy securities because of treasury policy or don’t have any of the legal administrative arrangements to buy securities direct, e.g. a company can buy a 1-month T Bill and can redeem it when needed with no risk.

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CTMfile take: Opening new ways of investing will become even more vital for corporate treasury departments as the geopolitical risks in the world economy increase, so the simple fact that an important new investment channel has secured their future development is good news for corporates worldwide.