Northern Trust to Offer Custody and Cash Management for Stablecoin Issuer Haycen

Haycen offers stablecoin-powered solutions tailored for non-bank lenders involved in international trade.

Key Points to Know:

• Northern Trust will offer custody and cash management services for Haycen, a stablecoin issuer specializing in trade finance.

• Haycen provides stablecoin-powered solutions designed for non-bank lenders operating in the trade finance sector.

Traditional finance giant Northern Trust (NTRS) announced on Thursday that it will offer custody and cash management services for Haycen, a stablecoin issuer focused on trade finance.

According to the press release, Northern Trust Asset Servicing will handle global custody for Haycen’s client fiat deposits, while Northern Trust Asset Management will oversee cash sweep services.

Stablecoins are cryptocurrencies pegged to assets like the U.S. dollar or gold, serving a crucial role in crypto markets and facilitating international money transfers.

Haycen, a digital payments provider specializing in trade finance, operates in the U.K. and Europe. The company provides wholesale stablecoin solutions tailored for non-bank lenders involved in global trade.

Stablecoins Poised to Modernize Trade Finance

Trade finance, a critical component of global commerce, remains heavily reliant on manual processes and high costs, limiting access for smaller businesses. The complexity and expenses of the traditional system often prevent them from securing necessary funding.

Stablecoins offer a solution by increasing access to U.S. dollars and enabling instant settlements, reducing friction in cross-border transactions.

"Global trade is an incredibly important part of the economy and a fantastic market for us as a stablecoin solution," said Luke Sully, founder and CEO of Haycen. "With banks scaling back trade lending due to regulatory changes, non-bank players now have an opportunity to move $2 trillion in annual flows—95% of which is in USD. Stablecoins provide yield enhancement and instant, cost-free global settlement."

Haycen has received U.K. government funding to develop institutional-grade stablecoins, further solidifying its role in modernizing trade finance.

Stablecoins in the Spotlight

Stablecoins have dominated headlines this week, with major players entering the space:

• Fidelity Investments is reportedly in the advanced stages of launching its own stablecoin, according to the Financial Times.

• World Liberty Financial (WLFI), a decentralized finance protocol backed by former U.S. President Donald Trump, has also confirmed plans to introduce a stablecoin.