Product

Block Earner opens gateway to blockchain finance for corporate and institutional investors

18 Oct 2022
  • The launch comes six months after the fintech disruptor successfully went live to Australian retail users
  • Australian businesses, including Spiral Blue, Studio 3AM and The Timber Yard are already using Block Earner for their corporate treasuries, earning a fixed annual yield of 7%
Sydney Australia, 18 October 2022 — Leading blockchain-powered, fintech startup Block Earner today officially launches its yield earning corporate treasuries solution — with a number of Australian businesses already unlocking the benefits of effective corporate treasury management.
Block Earner’s newest launch shakes up the idea of traditional corporate treasury management — offering businesses a fixed annual yield of 7% on USD digital assets and a fixed annual yield of 4% on gold digital assets — considerably more competitive yield options than what is currently being offered by traditional operators.
Users are not restricted by lock-in periods and can withdraw their capital at any time. Block Earner is also registered with AUSTRAC, which is responsible for preventing, detecting, and responding to criminal abuse of the financial system.
Over 20 Australian businesses across varying industries, including the likes of Spiral Blue, Saardé, Studio 3AM, Crypto Legal, Blueshyft and The Timber Yard are early adopters and have created business accounts with Block Earner after identifying the untapped opportunity to grow capital and manage their treasuries with ease.
Taofiq Huq, CEO and founder at Spiral Blue, which recently started using Block Earner for its deposits, said: “Being a startup, increasing risk in financial markets has meant that we’ve had to re-evaluate our business strategy as we plan for the next phase of our growth. We had been paying close attention to the strengthening US dollar for some time and were looking for a simple way to mitigate forex risks — managing a portion of our treasury with Block Earner allows us to grow our portfolio with simple access to USD Coin (USDC) and Paxos Gold (PAXG).”
Shenol Kizek, founder at Saardé, which also moved funds over to Block Earner, said: “With worldwide operations, we know diversification is the key to navigating the uncertainty across the ecommerce landscape. Parking a portion of our treasury with Block Earner allows us to diversify our portfolio and manage treasury risks more effectively.”
Block Earner is able to offer competitive yields by opening up the portal to typically complex, blockchain-based finance platforms.
Once a user deposits their Australian dollars, Block Earner facilitates the conversion of the funds to digital assets of the customer's choosing. Tier-one digital assets currently on offer via the Block Earner platform include USD Coin (USDC), a heavily audited and regulated stablecoin backed one-to-one by US dollar cash reserves and US treasuries; Paxos Gold (PAXG), a digital gold asset regulated by the New York State Department of Financial Services that’s fully backed by allocated physical gold and directly pegged to the real-time price of gold; as well as Bitcoin and Ethereum, the two largest cryptocurrencies by market cap.
To generate yield for users, Block Earner deploys funds to a select few blockchain partners that it has commercial arrangements with. These trusted partners are pre-vetted in accordance with Block Earner’s risk framework and offer proven, sustainable, and measured investment strategies to deliver yield.
Block Earner CEO and co-founder Charlie Karaboga said, “We’re on a mission to deliver the benefits of blockchain-based finance to everyday Australians and businesses.
“Mounting inflationary pressures, risks across financial markets and foreign currency fluctuations mean businesses are increasingly looking for better solutions to preserve capital and manage liquidity. Block Earner’s corporate treasury management solution addresses the current gap in the market and looks to solve some of the key pain points for businesses as they navigate challenging economic headwinds — by providing US dollar-backed access to fixed-rate, competitive-yield treasury management services without any lock-in periods.
“Australian businesses now have more options to manage their funds, preserve capital and invest in their future by gaining access to the benefits of a global blockchain-powered financial system, without having to navigate the complexities around private-key management, volatility, and high fiat-to-crypto conversion fees.”
The corporate treasury launch comes just over six months after Block Earner launched its competitive-yield product to Australian retail users. While earning yield on USDC or PAXG helps organisations preserve and grow capital, Block Earner has additional product launches in the pipeline to help businesses manage other digital assets that they may hold within their portfolios.
Businesses investing in cryptocurrency is not new, with the likes of Tesla, MicroStrategy and Block Inc. having invested enormous sums in Bitcoin portfolios. Block Earner’s latest offering aims to provide non-crypto-native Australian businesses access to all the benefits of blockchain-based finance.
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