Why we launched currency conversion at TreasurySpring

TreasurySpring is known for democratising access to the safest cash investment products traditionally reserved for the largest global financial institutions. Designed to supplement our cash investment options, we have now introduced our first non-investment treasury feature: currency conversion - and it doesn’t look how you might expect!

I'd like to share some insights into this new service, highlighting how we’re bringing transparency, efficiency, and reduced risk to foreign exchange (FX) transactions for companies and fund managers of all sizes.

A transparent approach to currency conversion

Traditionally, the foreign exchange market has operated using a request-for-quote (RFQ) model, where prices are held momentarily, forcing clients to make rapid, subjective decisions about rates. At TreasurySpring, however, we’ve decided to take a different approach.

We always execute currency conversions against a well-established regulated benchmark: the WMR Intraday Spot Rate published hourly by FTSE Russell. Instead of requiring clients to quickly determine whether a given FX rate is fair, we offer them a transparent, predetermined spread from this independent and objective market benchmark. This ensures that our clients always receive a fair rate, complete with a fully transparent audit trail.

With our approach, clients won’t see their exact conversion rate until shortly after the hourly fixing, but they gain complete confidence knowing the rate is objectively set using a transparent methodology, removing uncertainty from the FX process.

Efficient, near real-time settlement

We execute currency conversions on a same-day (T+0) settlement basis, unlike traditional FX markets, which typically settle trades within two days (T+2). Our timely settlement reduces credit and counterparty risk significantly, allowing clients to promptly reinvest or withdraw their funds, usually within minutes of the benchmark being published.

Clients can easily convert cash coming out of Fixed-Term Funds (FTFs) or prior to subscribing for new FTFs. They can also submit conversion orders days in advance, secure in the knowledge that their transactions will be executed promptly and transparently calculated based on the trusted WMR benchmark. This completely removes the anxiety and guesswork associated with timing FX transactions. No more chart-watching or “buyer's remorse” about when and at what price you executed.

Bringing institutional FX standards to wider markets

The WMR Intraday Spot Rates we use are established industry benchmarks, extensively used by major asset managers and pension funds. Derived from verifiable market transactions and robust validation procedures, these fixings accurately represent actual market conditions. Additionally, by always referencing the mid-market WMR rates, we remove hidden bid/ask spreads, reducing risk even during volatile periods. Whether you are buying or selling, it will always be with reference to the same mid-market rate for a particular currency pair at a particular fixing time.

While WMR fixings have existed for more than 30 years and are trusted among institutional investors, we are now extending access to this institutional-grade standard to a broader audience— including SMEs, venture-backed startups, private equity firms, quasi-governmental bodies and publicly listed corporations.

Addressing a real need

Our decision to develop this currency conversion feature came directly from listening to our clients. Many of them — from SMEs to large corporates and fund managers — regularly operate across multiple currencies, facing inefficiencies and additional costs when converting funds externally. We saw a clear opportunity to simplify this process by integrating currency conversion directly within our platform.

Now, our clients can seamlessly manage currency conversions and yield-bearing investments within the same familiar environment. For example, a UK-based scale-up expanding internationally can naturally hedge its currency exposure by efficiently rebalancing its currency positions without ever having to move cash off-platform. This way, clients never miss out on a day’s yield on their cash while saving time and reducing risk and fees on their FX.

Transparent pricing and reduced counterparty risk

Our transparent approach extends to pricing as well. We operate on a clearly defined, spread-based pricing model, applying a small spread to the WMR mid-market rate. Clients always know exactly what they're paying, with larger transactions typically attracting a lower spread.

We have set the minimum transaction size at $50,000 USD (currency equivalent), a suitable level for corporate-scale activity. Although there's no set maximum transaction size, we would request a day’s notice for trades exceeding $100 million to ensure smooth execution.

We manage counterparty risk by exclusively partnering with major investment banks, typically with a credit rating of A or higher. Since all conversions are pre-funded and settled within minutes, the intraday exposure to counterparties is minimal. This approach aligns perfectly with our core philosophy of reducing credit and operational risks for our clients.

Future enhancements

We plan to expand our range of currencies beyond our current offerings of USD, EUR, GBP, CHF, and CAD. Potential future additions include MXP, ZAR, SGD, and AUD, responding to client demand.

Additionally, we’re exploring new hedging capabilities. One potential enhancement would allow clients to lock in favourable conversion rates ahead of maturity, hedging the redemption proceeds of their FTFs in advance. This could significantly expand our currency-hedging capabilities, offering clients additional strategic flexibility.

In summary

This new currency conversion feature fully aligns with our mission of democratising access and simplifying capital markets. By offering transparent and institutional-quality currency conversion alongside robust cash investment solutions, we empower companies and fund managers of all sizes to manage multi-currency holdings efficiently, without the complexity or costs typically associated with traditional FX transactions.

Our clients gain greater control, awareness, and peace of mind — free from the guesswork that is usually an occupational hazard of FX operations. With this innovation, we continue to simplify treasury management, enabling our clients to focus on their core objectives and growth.

*TreasurySpring’s blogs and commentaries are provided for general information purposes only, and do not constitute legal, investment or other advice.

If you're interested in currency conversion with TreasurySpring fill in your details below!