Lorum adds yield to treasury cash management

By Milan Rojan

Lorum has announced the upcoming launch of a yield-bearing capability within its cash management offering for institutional treasurers, extending its correspondent rails into a model that has combined clearing, custody, foreign exchange and yield in a single account structure.

The capability has allowed clients to earn yield on idle balances held on the platform, including dollars held for foreign exchange execution, operational liquidity buffers, and funding held between collection and payout cycles. Lorum has said the service was designed to sit alongside its existing multi-currency clearing, custody and FX offering, with money market instruments made available through one relationship.

George Davis, Founder and CEO of Lorum, said, “We’re basically building a new-age BNY. Treasurers don’t want a new way to move money. They want their cash to keep working while they retain control of it, and they want it sitting with a provider that has no lending book and no incentive to keep deposits trapped. Clients tell us where they want to allocate, we execute, and the yield comes back to them. There is no discretion, no balance sheet pressure, and no incentive misalignment.”

The company has positioned the move as part of a wider effort to simplify treasury operations for mid-market financial institutions and the platforms they support. It has been argued that treasurers have often relied on multiple providers to move money, hold balances and generate yield, with each relationship serving a separate function. Lorum has said its infrastructure was built to bring those tasks together within a single platform.

The firm has also said the new capability has been execution-only, with Lorum acting on client instructions rather than exercising discretion. Client funds were held on a fully reserved basis, with no lending book and no rehypothecation, while income generated by the underlying investments was passed through to clients pro rata over the investment period.

Lorum has said the capability has been aimed at institutions that have lacked direct access to treasury bills or money market funds through the traditional model.