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Treasury management using cryptocurrencies offers users a secure and efficient way to manage team finances. Through Crypto treasury management, users can store their funds on-chain gated by a Multi-signature Wallet, Instead of holding team funds using centralized solutions like TradFi banks or a Centralized exchange (CEX).
This blog post will explore the five main reasons crypto treasury management is a significant choice for managing your finances.
1. To save time
Cryptocurrency payments are much faster than traditional banking processes. Blockchain transactions are completed in seconds compared to days when using other payment methods, like ACH transfers. For example, Solana can process 65,000 transactions per second (TPS).
Additionally, token distribution platforms like Streamflow allow users to automate recurring crypto payments, saving setup time for payroll and token vesting.
2. To reduce costs
Utilizing payments in crypto eliminates the need to pay expensive transaction fees, which can add up over time. Additionally, payment in crypto reduces the need to pay traditional banking fees, reducing the overall costs associated with treasury management. Blockchains like Solana offer sub $0.01 transaction fees.
Streamflow’s token streaming contracts also help reduce costs associated with treasury management. Instead of paying out a large sum of money at once, businesses can use token streaming contracts to break up payments into more manageable chunks, making it easier to budget and plan for payments. It can be especially beneficial for small businesses, which may not have the resources to pay large sums of money at once.
3. To increase efficiency
Crypto Treasury management can increase the efficiency of your business’s financial operations. By allowing you to conduct all transactions, including paying bills and receiving payments, in a single digital currency like a stablecoin, you can save time and money by reducing the need for multiple payment systems.
Additionally, payments in crypto execute more quickly and securely than traditional payments, reducing delays in transaction processing.
In addition, Streamflow simplifies complex processes, such as vesting schedules. By utilizing blockchain technology, you can automate the distribution of tokens or other digital assets according to a predetermined vesting schedule. It eliminates manual steps and makes the entire process more efficient and cost-effective.
4. To improve security — multisig
Cryptocurrency payments are securely transferrable across international borders via blockchain technology. Blockchain technology offers cryptography and consensus algorithms that ensure fraud detection for all transactions, including payments.
Furthermore, Streamflow’s Multi-signature Wallets make it easier to manage funds and reduce the risk of fund-draining hacks. Multi-sigs require multiple authorized users to complete a transaction which spreads the attack vector and decreases the chances of a single compromised wallet draining funds.
5. To improve transparency
Payments in crypto allow for increased transparency and traceability, meaning that you can easily track payments and verify transactions. Every blockchain has a respective blockchain explorer where users can access all transactions. Transparency is becoming increasingly important as many Web3 communities are petitioning for decentralization in the wake of events like the FTX collapse.
By implementing payments in crypto, organizations can streamline their payment process and reduce the cost of maintaining multiple payment systems. Additionally, businesses can use multi-sig Wallets and token streaming contracts to ensure that employees receive funds in a timely and secure manner.
To learn more, visit Streamflow.finance/multisig