CryptoInvestment Management
June 30, 2022

The Inevitability of Crypto for Corporates

While the cryptocurrency market has imploded recently, treasury’s need to become crypto-fluent remains strong. Sharp drops in cryptocurrency value have grabbed headlines and rattled investors. However, the reality for most corporates is that they must continue, and even accelerate, their efforts to understand the market’s mechanisms and dynamics. Companies’ strategic initiatives, such as issuing nonfungible tokens (NFTs), and rising demand for payment in crypto from a younger customer base, are forcing treasuries to come up the crypto learning curve. According…
CryptoTalking Shop
June 16, 2022

Talking Shop: Managing Credit Risk for Crypto Custodians

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: [email protected] Member question: “How should corporates manage credit risk for cryptocurrency custodians?” Peer answer 1: “We’ve thought a lot about this. One point to make: Anchorage Digital Bank is federally chartered by the OCC; most others are state chartered. We look at things like that. Most of these licenses have pretty high standards for capitalization, so it might…
CryptoESGTreasury Management
December 29, 2021

Best of NeuGroup Insights, Second Half of 2021

Stories that stood out included posts on cryptocurrency, the effect of ESG on credit ratings, Google’s innovation with SAP, an in-house fintech and a pair of video interviews. Review and reflect. Our final email of 2021 is a baker’s dozen of best posts from the last few months—selected for their topicality (ESG, cryptocurrency, NFTs), detailed descriptions of finance teams meeting challenges (complex spin-offs, post-merger integration, recruiting talent) and focus on key trends in treasury and beyond (right-time finance for FP&A,…
CryptoRisk Management
October 7, 2021

Cryptocurrency Challenges: A Risk Manager Prepares with Peers

Insights and observations on the intersection of treasury and crypto in a video interview with Medtronic’s Tim Husnik.Medtronic senior treasury director Tim Husnik loves a challenge. So it’s no surprise that he’s giving lots of thought to what his FX risk management team and other treasury groups will need to do, and how to do it, if Medtronic customers start asking to pay for products with cryptocurrency. “There will be an intersection with treasury at some point in the future,”…
CryptoCyber risk
September 30, 2021

The Treasury Cryptocurrency Handbook, Chapter 1: Ransomware

Finance teams prepare for questions on crypto as corporates plan for ransomware attacks.Cryptocurrency and ransomware proved popular topics at a recent meeting of NeuGroup for Global Cash and Banking, during both the Projects and Priorities session and in a smaller breakout group. Some members are being asked how treasury plans to respond if cryptocurrency is needed in the event of a ransomware attack.Most members said their companies have no current interest in investing in or holding cryptocurrency.  A few members…
September 9, 2021

Diving Into the NFT Deep End: Auctions, Crypto Risk and ESG Concerns

One AT helped marketing capitalize on the nonfungible token craze while minimizing financial and reputational risk.Amid all the buzz and flurry of headlines around nonfungible tokens (NFTs), the actual process of creating, selling and maintaining them is somewhat cloudy. When one NeuGroup member was thrown into the deep end by his company’s marketing team, he had only six weeks to swim his way to the surface and prepare treasury for a public NFT auction. NFTs are unique digital assets that…
Capital MarketsCash InvestmentsCrypto
September 9, 2021

Hunting for Yield With Crypto-based Lending Amid Regulatory Fog

Corporates seeking better returns on cash by lending crypto weigh falling rates and regulatory uncertainty.News this week that the SEC is investigating Coinbase Global over a lending program and may sue the company could have a chilling effect on corporates that were considering buying and then lending cryptocurrency to pick up yield. But the fact remains that corporate treasuries have been challenged for years to find investments in which to park cash that provide attractive, positive returns.And a small but increasing…
CryptoRisk Management
July 1, 2021

In Creeps Crypto

While most companies aren’t directly involved in crypto yet, members expect questions and are looking for answers. In a twist providing insight into an increasingly important issue, assistant treasurers at a recent NeuGroup meeting pointed to a discussion about cryptocurrencies as one of their takeaways while saying digital currencies have not yet had an impact on their treasury departments.   Members of NeuGroup for Large-Cap Assistant Treasurers agreed that corporate higher-ups would almost certainly inquire soon about digital currencies and assets—one…
June 24, 2021

China and Beyond: Understanding Central Bank Digital Currencies

Insights from HSBC on CBDCs, as China’s tests of a government-backed digital currency, dubbed e-CNY, grow larger.Most multinationals in the NeuGroup Network do business in China, just one reason finance teams need to stay on top of the country’s expanding tests of a digital version of the yuan known as the e-CNY, a so-called central bank digital currency or CBDC. HSBC’s global head of FX research, Paul Mackel, spoke at a NeuGroup virtual interactive session sponsored by the bank this…
June 24, 2021

Early Innings in the Fintech Disruption Game

A partner at VC firm Canapi Ventures says regional banks can play by helping developing the digital infrastructure. Blockchain-technology firms may be among the best-known disruptors of traditional banking services, thanks in part to the extreme volatility of the cryptocurrencies the technology supports, like Bitcoin. But fintechs take many forms, and the real disruption is still to come. That takeaway surfaced at a recent NeuGroup meeting of bank treasurers that included insights from Jeffrey Reitman, a partner at Canapi Ventures, which…