Securities Finance Technology News | DAIM Launches Stable Parts Cash Management Program


Digital asset management company DAIM has launched a cash management program.

The DAIM cash management program for corporate clients will improve returns on idle cash held in cash and could help companies achieve returns of up to 8% through over-collateralized loan facilities, ranging from one day to 12 month periods.

Since the purchasing power of the dollar decreases due to Federal Reserve money printing, converting dollars into stablecoins generates a return and preserves capital, DAIM explains.

The digital asset space is a newer asset class that removes middlemen from the traditional banking system and instead pushes more returns for the account holder.

The USD is wired to a qualified digital asset custodian, such as DAIM. These dollars are exchanged for a stablecoin, a class of cryptocurrencies that provide price stability and are backed by a reserve asset. Stablecoins are placed in a lending program. On demand or at the end of the term, principal and interest are exchanged and returned to the source bank.

All borrowers and counterparties are thoroughly vetted through thorough credit underwriting, collateral management assessment, asset and liability review, and quantitative and qualitative risk analysis, explains SUEDE.

This process has resulted in zero defaults and a consistently high level of creditworthiness and these trusted institutional and commercial borrowers are showing between 100% and 200% collateral, the digital asset management firm claims.


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