Institutions operating across fiat and digital asset markets are exploring new settlement models as Jiko introduced an infrastructure framework designed to reduce counterparty risk and provide continuous liquidity backed by short term U.S. Treasury bills. The company has built a high volume settlement network that allows funds to move between fiat accounts and tokenized environments with minimal friction, addressing long standing inefficiencies that arise when transactions cross between traditional banking systems and blockchain based markets. The model relies on ultra short duration Treasuries held in the name of the client, ensuring that balances remain yield generating and protected at all times while preserving the ability to settle transfers in real time. The approach aims to solve balance sheet concentration risk, operational delays, and compliance complications that have historically made institutional crypto activity dependent on fragmented intermediary rails. As more firms gain regulatory approval to hold digital assets, demand for integrated settlement processes has increased sharply, creating a need for reliable infrastructure that can function around the clock.
Jiko’s settlement network attempts to reduce these barriers by providing a unified structure for moving dollars at scale. The platform automatically transitions balances between T bills and cash as transfers occur, using a sequence that maintains each client’s direct ownership while enabling instantaneous completion of ledger entries within the bank. This model reduces exposure to withdrawals, liquidity mismatches, and inconsistent API standards that have limited liquidity providers and funds trading digital assets. Operational complexity has been a major limiting factor, as existing rails often impose high per transaction costs and can delay Treasury movements during periods of market stress. By integrating Treasury settlement into a digital wallet format, Jiko positions its system as an institutional grade bridge for companies that need predictable liquidity without sacrificing yield. The company also developed a dedicated network for crypto facing institutions, enabling these firms to move dollars with the same settlement guarantees while maintaining regulatory alignment.
The effort highlights the broader trend of traditional finance and digital asset markets converging around shared infrastructure. Firms managing large pools of liquidity require predictable risk frameworks, particularly as banks reassess how digital asset companies fit into capital rules and supervisory expectations. Jiko’s model addresses concerns around balance sheet exposure by operating without leverage and by anchoring settlement balances in Treasury holdings rather than bank deposits. This design allows dollar movements to occur continuously without exposing funds to intermediary credit cycles. As liquidity grows across tokenized assets, including stablecoins and on chain cash equivalents, demands for consistent settlement pathways are likely to increase. Industry participants view systems like Jiko’s as part of a broader shift toward safer, yield supported liquidity rails that mimic the certainty of traditional clearing but operate at digital speed. The model could also encourage more companies to adopt Treasury based risk management, reducing inconsistencies between corporate cash practices and crypto market activity as firms seek to streamline treasury operations across both financial environments.
