Franklin, a hybrid cash and crypto payroll provider, is introducing a new initiative designed to transform idle payroll funds into yield-generating opportunities. The solution, named Payroll Treasury Yield, leverages blockchain lending protocols to help companies earn returns on payroll funds that would otherwise remain idle, the firm revealed to Cointelegraph in an exclusive statement. Franklin explained that its new service integrates Summer. fi, a decentralized finance (DeFi) lending platform, enabling businesses to deposit stablecoin-denominated payroll reserves into smart contract–based lending pools. These funds are loaned to vetted borrowers, allowing companies to gain yields while maintaining access to their capital. Firms retain full custody throughout, and the employed smart contracts undergo audits to minimize risks. “The challenge Franklin addresses is two-fold, ” Megan Knab, founder and CEO of Franklin, told Cointelegraph. For businesses already incorporating crypto on their balance sheets, Franklin facilitates using those assets to manage operations, she noted. “But for the broader market, we’re enabling future business models where money moves instantly, more intelligently, and more globally, ” Knab added. Related: PayPal to offer 3. 7% yield on stablecoin balances: Report An Alternative to T-Bills Franklin stated that its offering serves as an alternative to traditional treasury instruments like sweep accounts or T-bills, which often entail operational complexities and limited returns. Additionally, it differs from earned wage access (EWA) platforms that allow employees to access earned wages before payday, helping avoid additional debt and related expenses. “Over the next decade, traditional payments will increasingly run entirely on public blockchain rails, replacing ACH and SWIFT on a wholesale scale, ” Knab said. She further commented that if on-chain payroll solutions become mainstream, banks could recede to a less prominent role.

While technology might substitute many banking functions with self-custody tools and smart contracts, regulatory frameworks will still demand accountable legal entities. Consequently, this could produce “zombie-like institutions” — banks existing mainly in name to satisfy compliance but playing minimal roles in actual payment processing, Knab observed. Nevertheless, decentralized lending carries risks such as smart contract vulnerabilities and market volatility. Franklin aims to mitigate these threats by utilizing Summer. fi’s audited contracts and implementing overcollateralized lending. Related: How to Use tsUSDe on TON for Passive Dollar Yield in 2025 Growing Interest in Yield-Generating Strategies Interest in yield-generating approaches within the cryptocurrency industry has surged recently, driven by retail and institutional investors eager to maximize returns on digital assets. On May 16, Solv Protocol launched a yield-bearing Bitcoin token on the Avalanche blockchain, offering institutional investors more exposure to yield opportunities backed by real-world assets (RWAs). On May 1, Ryan Chow, co-founder and CEO of Solv Protocol, noted that demand for Bitcoin-related yield strategies is increasing rapidly, especially among firms seeking liquidity without selling their BTC holdings.