Why corporate treasurers are looking beyond traditional cash management

As a corporate treasurer or finance leader, you may already know what we’re about to say: Your corporate cash reserves could be losing money every quarter. Sorry to poke at that wound, but stay with us. It’s for good reason.

According to Treasury.org, in an environment of higher rates and ongoing inflation, traditional cash management is facing pretty substantial headwinds. Namely: preserving real value. This, in turn, leaves corporate treasuries exposed to silent balance sheet erosion.

This may represent the largest systematic wealth erosion in corporate history; however, Treasury.org says that it could also be the greatest treasury modernization opportunity of our generation.

To fully understand what a corporate treasurer should know in light of falling yields, we teamed up with Treasury.org to explore why traditional cash management models have become obsolete—and share the details on the complementary framework that could take us forward. You can also find all of this info (and more) right on their newly unveiled (and pretty snazzy) website.

So, what’s a CFO to know? Let’s get into it, with Treasury.org as our guide.

How we got here + next steps

For over a decade after the global financial crisis, zero interest rates and quantitative easing took charge. Borrowing costs fell, which fueled speculation and undervaluation of productive companies.

This era is over (phew?). But interest rates have since jumped to over 5%, the fastest rise since the 1980s (not so phew).

But as governments keep running sizable deficits, policy tends to focus on managing heavy debt loads rather than preserving savers’ real wealth. The result: Traditional cash management models, based on stable currencies and positive real returns, have dwindled.

Treasurers are now dealing with consistent erosion of purchasing power, and this new environment pushes us to rethink strategies for growth and protection.

The starting point: getting off zero.

What is “getting off zero”?

As we mentioned, Treasury.org explains that corporate treasuries are facing gradual wealth erosion under traditional cash management.

But.

It’s not time to just accept the slow fading of purchasing power as the new norm. It’s time to pivot. And digital asset strategies now offer a path to outperformance and growth.

In comes the “getting off zero” method.

The “getting off zero” approach enables thoughtful treasury transformation by shifting nonoperational surplus cash into modest allocations of institutional-grade digital assets. It replaces the lowest-yielding instruments with modest digital asset exposure. This can create meaningful portfolio enhancement without disrupting operational discipline. A seamless exchange.

Treasury.org shares that many CFOs sidestep institutional inertia by allocating surplus cash to institutional-grade digital assets, selecting Bitcoin, Stablecoins, and Solana for their proven utility, security, and regulatory clarity.

Bitcoin, Stablecoins, Solana: The dynamic trio

To further understand Bitcoin, Stablecoins, and Solana—and how they can create a new path forward for CFOs and treasurers—let’s start with a rundown of each:

Bitcoin

• Treasury.org explains that Bitcoin functions as the foundational store-of-value component. You can think of it as your potential wealth preserver.
• With its fixed supply and unchanging monetary policy, Bitcoin can provide a hedge against currency debasement, like a defensive mountain.

Stablecoins

• According to Treasury.org, Stablecoins like USDC offer price stability backed 1:1 to the US dollar. Yes, you read that correctly.
• Corporate treasuries should know that Stablecoins bring liquidity management and quick cross-border transactions, and they can streamline operational payments for enhanced efficiency.
• Allocating to Stablecoins can allow treasuries to earn yield and maintain operational flexibility with seamless access to fiat-denominated transactions.

Solana

• Treasury.org highlights Solana as the high-performance infrastructure powering internet capital markets, payments, and decentralized applications.
• Designed for scalability and speed and offering low transaction costs, Solana fosters real-time settlement, programmable finance, and staking yields, making it a significant exposure for growth-focused digital treasuries.

As Treasury.org frames it, think of Bitcoin as the digital reserve asset, Stablecoins as the digital proxy for fiat, and Solana as the growth asset of digital treasury allocation. A triple layer of fortitude.

A question you might have that also happens to be frequently asked: What is the minimum allocation recommended for digital asset treasury implementation?

Treasury.org explains that conservative implementations typically begin with 1%–3% allocations to establish operational processes and stakeholder confidence.

And if you’d like to take a look at the quantified impact of digital asset treasury allocation, Treasury.org examined four portfolio scenarios to analyze how different allocation strategies across this digital asset trio perform against a transitional 60/40 baseline. The simulations are based on the previous five years with quarterly rebalancing and are meant to underline exactly how strategic deployment can transform treasury outcomes. See the results for yourself on Treasury.org’s page.

From static preservation to dynamic optimization

In this ever-evolving digital age, staying static won’t do you any favors. So while traditional cash management can preserve capital, it can simultaneously diminish purchasing power. On the flip side, digital assets can provide exposure to technological infrastructure while generating yields that compound over time.

And yes, portfolio theory applies to treasury management, too. And as fellow inhabitants of the digital age, here are some bite-size closing pointers Treasury.org holds to that you should consider:

• Cash is not always king—productive assets are. We’re all always going to be fans of the dollar, but digital assets can generate yields that compound over time.
• See currency risk as a catalyst. As traditional currencies face ongoing pressures, digital asset adoption is becoming part of the conversation for forward-thinking treasuries. This itself is an opportunity: Understanding the long-term currency outlook can shape a more flexible tech strategy.
• Will every company be a DAT? Treasury.org aptly shares that just as every company evolved and embraced digital transformation (i.e., many of the technological capabilities we now use daily), digital assets have the potential to become increasingly integrated into corporate treasury ops over time, too.

And that’s why Treasury.org was built to give you the tools, insights (aka this explainer), and frameworks to lead—not follow.

Learn more about unlocking yield, resilience, and diversification in the digital era.