DeFi is creeping into corporate cash flow
There’s something interesting happening in what is usually considered a boring corner of corporate finance. According to David Bachman, managing partner at investment firm CoinFund, CFOs are looking to store their companies’ excess cash in DeFi vaults rather than money market funds or other familiar short-term investments. If this happens, it will pull billions of dollars of new assets into cryptocurrencies.
The term DeFi treasuries, if you’re not familiar, describes protocols that allow investors to earn a return through decentralized smart contracts — think platforms like Aave, Yearn Finance, or Morpho, which act as automated asset managers. It’s not new, but Backman says it’s attracting new interest from the corporate world amid its broader push toward stablecoins.
To understand the context here, it helps to know that managing incoming cash is a full-time job at large companies. For example, the balance sheets of Microsoft and Apple list about $102 billion and $55 billion, respectively, in the categories of cash, “cash equivalents,” and short-term investments such as stocks. The people overseeing these hoards of cash are not stupid, of course, and are seeking to add a little extra juice to profits by improving yield.
This process usually involves contacting the bank during business hours and arranging a money market transaction or something similar. Now, though, there’s a compelling alternative in DeFi, which typically offers higher returns, and — unlike traditional financial instruments — the opportunity to invest for very short periods of time without a lot of fuss.
Backman says his company advises traditional companies, including a large consumer tech company, on how to tie their funds to DeFi treasuries, typically via stablecoins. While the recently passed Genius Act prohibits stablecoin issuers from paying interest, this prohibition does not apply to a large number of other players, including DeFi platforms. This offers a very obvious solution, and as Bachman notes, “the cat is out of the bag.”
No well-known brands have registered to invest money in DeFi, but it likely won’t be long before they do. I say this in part because I’m betting on Pakman, a venture capitalist with work experience at Venrock and Apple, who’s not one to buy into the hype. But I also think traditional companies will start stashing their money in DeFi because it makes sense: the best platforms are highly secure, they’re faster and more profitable, so why not use them to get a little extra return?
If you want another sign of how quickly cryptocurrencies are entering the mainstream, Backman mentioned in passing that he teaches a decentralized finance-related class at the University of Southern California — and his course is one of at least eight on cryptocurrencies. Less than a decade ago, putting Bitcoin on the school curriculum would have seemed radical, but now, cryptocurrencies are part of the curriculum at universities. There is no going back.
Jeff John Roberts
jeff.roberts@fortune.com
@jeffjohnroberts
Decentralized news
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Main character of the week
Eric Lee – Bloomberg/Getty Images
This week’s lead figure nod goes to Robinhood CEO Vlad Tenev, whose company posted record revenues thanks to strong cryptocurrency activity in the third quarter. On a live earnings call, Tenev also announced that Robinhood will double down on its efforts Prediction markets And symbolic shares.
Mimi, oh wait
@rektmando
The president promised to keep it The money printer goes brrrr Cash grants and 50-year mortgages are likely to help boost Bitcoin, which registered a modest rebound over the weekend.
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2025-11-10 12:35:00
