Uber puts idle cash on-chain: Can it turn money market funds back into cash on weekends, too?
Big companies always need to keep a chunk of idle cash on hand as a reserve. The reason is pretty mundane: banks don’t settle transactions on weekends, and redeeming money market funds takes until T+1.
On October 30, HSBC Bank USA, Franklin Templeton, Tradeweb, and Fireblocks completed a pilot on Canton Network, with Uber as the pilot client. Here’s what the official press release confirms:
1. Uber used “HSBC tokenized deposits” to buy Franklin Templeton’s tokenized money market fund on Tradeweb, then used Fireblocks to make a delivery-versus-payment (DvP) transaction on Canton.
2. Uber can redeem some of its fund shares, including on weekends. The shares earn interest the entire time they’re held, right up until payment is needed.
3. The cash and asset legs “settle nearly instantly and together in a single synchronized execution,” reducing settlement risk.
4. Fiat currency from redemptions can only be settled into KYC-verified business bank accounts.
A quick guide to three things that sound similar:
Tokenized deposits are a bank’s liabilities moved on-chain. In this case, the press release refers to deposit liabilities of HSBC Bank USA, which are covered by FDIC insurance up to the applicable limit;
Stablecoins are liabilities of their issuers (such as Circle or Tether);
Tokenized money market funds are fund shares moved on-chain. They generate returns, but also carry the risks of the fund itself.
Uber used the first to buy the third; no stablecoins were used at any point.
A bit of a buzzkill: this is a “pilot.” The press release itself calls it a “first step,” not a product that’s already live and available to everyone. The claim circulating online that it means “earning a few extra days of returns” is a media estimate; the press release gives no specific figures.
What’s really worth watching is that banks are starting to use their own “on-chain deposits” to compete for the kind of business stablecoins want to capture: companies’ weekend payments.
What do you think corporate treasuries will ultimately use: bank tokenized deposits or stablecoins?
#RWA #代币化 #Canton
Big companies always need to keep a chunk of idle cash on hand as a reserve. The reason is pretty mundane: banks don’t settle transactions on weekends, and redeeming money market funds takes until T+1.
On October 30, HSBC Bank USA, Franklin Templeton, Tradeweb, and Fireblocks completed a pilot on Canton Network, with Uber as the pilot client. Here’s what the official press release confirms:
1. Uber used “HSBC tokenized deposits” to buy Franklin Templeton’s tokenized money market fund on Tradeweb, then used Fireblocks to make a delivery-versus-payment (DvP) transaction on Canton.
2. Uber can redeem some of its fund shares, including on weekends. The shares earn interest the entire time they’re held, right up until payment is needed.
3. The cash and asset legs “settle nearly instantly and together in a single synchronized execution,” reducing settlement risk.
4. Fiat currency from redemptions can only be settled into KYC-verified business bank accounts.
A quick guide to three things that sound similar:
Tokenized deposits are a bank’s liabilities moved on-chain. In this case, the press release refers to deposit liabilities of HSBC Bank USA, which are covered by FDIC insurance up to the applicable limit;
Stablecoins are liabilities of their issuers (such as Circle or Tether);
Tokenized money market funds are fund shares moved on-chain. They generate returns, but also carry the risks of the fund itself.
Uber used the first to buy the third; no stablecoins were used at any point.
A bit of a buzzkill: this is a “pilot.” The press release itself calls it a “first step,” not a product that’s already live and available to everyone. The claim circulating online that it means “earning a few extra days of returns” is a media estimate; the press release gives no specific figures.
What’s really worth watching is that banks are starting to use their own “on-chain deposits” to compete for the kind of business stablecoins want to capture: companies’ weekend payments.
What do you think corporate treasuries will ultimately use: bank tokenized deposits or stablecoins?
#RWA #代币化 #Canton
