TreasurySpring launches Fixed-Term Fund platform
London-based TreasurySpring has launched its new Fixed-Term Fund (FTF) platform following a successful beta testing phase, reports Jane Connolly.
The FTF is a new financial instrument designed by TreasurySpring to connect cash-rich investors looking to diversify and reduce risk with institutional borrowers from the sovereign, bank and corporate sectors.
For firms seeking financing, the digital platform offers flexible access to alternative short-term funding sources. An FTF has many of the same features of a term deposit, without exposure to unsecured bank risk.
Since the first FTF was issued in June 2018 in beta phase, more than $400 million of FTFs have been purchased, $300 million in this year alone.
“Through these pipelines, we are democratising access to the wholesale money markets, enabling every holder of large cash balances to invest them in the same way as the most sophisticated financial institutions,” says TreasurySpring co-founder and CEO, Kevin Cook.
“We designed our FTF platform in response to clear and repeated demand for cash investment alternatives – alternatives that allow investors to risk less but earn more – and we are delighted to now be able to deliver simple, standardised, regulated products to meet that demand.”
Tim Howell, former CEO of Euroclear and investor in TreasurySpring, adds: “I believe we are looking at the first material innovation in this space since the creation of money market funds in the 1970s.”
The FTF platform can be accessed via TreasurySpring’s cloud-based web portal and is designed to integrate with other platforms via secure APIs.