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Sydney-based fintech startup Block Earner has today launched a new corporate treasuries solution for Australian businesses, opening up new opportunities for companies looking to access blockchain finance for their corporate accounts.
The new product, released just six months after the fintech went live to Australian retail users, aims to shake up the idea of traditional corporate treasury management - offering businesses a fixed annual yield of 7 per cent on USD digital assets (USD Coin) and a fixed annual yield of 4 per cent on digital assets that track the price of gold.
For Block Earner, founded in 2021 by Jordan Momtazi and Sydney Young Entrepreneur Awards finalist Charlie Karaboga, the corporate treasuries solution is an expansion of its focus which has so far been on retail users.
The company is looking to disrupt how Australians invest and save money, by letting them convert AUD into stablecoins backed by the price of USD or gold, and earn yield like they would with a traditional savings account.
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.
Block Earner claims more than 20 companies have already created business accounts, including the likes of Spiral Blue, Studio 3AM, Crypto Legal, Blueshyft and The Timber Yard.
Block Earner CEO and co-founder Karaboga says the company is 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,” Karaboga says.
“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 service launch comes just months after Block Earner closed a $6.5 million seed funding round, which was backed by heavyweights in the decentralised finance and Web3 space.
Backers included US-based Coinbase Ventures and Framework Ventures, as well as Australian crypto pioneer Kain Warwick who founded Synthetix - a decentralised derivatives exchange.
The company says it has other product launches in train for business customers to help them manage other digital assets that they may hold within their portfolio, including a self-managed super fund-style service.
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