Uber innovates in treasury management using blockchain

On October 30th, Uber conducted a pioneering transaction by buying and reselling shares of a money market fund from Franklin Templeton, on Thursday and Sunday respectively. This operation, facilitated by a blockchain and supported by HSBC, Tradeweb and Fireblocks, helped resolve a persistent problem.

The blocking of funds is linked to the operating hours of central banks. In the United States, the Federal Reserve’s settlement system does not function on weekends, and Sunday-to-Friday operation is not expected until 2028 or 2029. The Eurozone follows a similar schedule, with the European Central Bank’s settlement system closed from Saturday at 2:30 AM to Monday at 2:30 AM.

Uber’s solution relies on the use of tokenized assets, recorded on a shared digital ledger. It involves the simultaneous exchange of tokenized deposits from HSBC and shares of Franklin Templeton’s money market fund, via the Canton blockchain. “This is an important first step,” said Odette Rodrigues, Uber’s Vice President of Treasury.

Although the direct financial gain is modest – approximately one and a half days’ worth of interest, potentially $15,000 for $100 million placed – the operation demonstrates the potential of continuous treasury management. The market is immense, with U.S. money market funds managing $7.9 trillion.

The current operation is limited to a single client, one fund, and one network. For broader adoption, other banks must offer compatible tokenized deposits. HSBC plans to extend the service to other clients in the United States and offer other investment options.

In Europe, the European Central Bank has launched Pontes, a system enabling the settlement of securities in central bank money on a blockchain, although final payment remains subject to regular operating hours. Michael Shaulov, CEO of Fireblocks, anticipates the adoption of similar solutions by hundreds of companies within the next eighteen months, driven by the demand for continuous treasury management.