Treasurers Build Cash Buffers as Stablecoins Stall

Why It Matters

Higher cash reserves signal heightened risk aversion amid geopolitical, inflationary, and tariff uncertainties, shaping treasury strategies that favour safety and limit exposure to emerging digital assets. This cautious stance influences liquidity markets, bank‑deposit demand, and the pace of fintech innovation in corporate finance.

Key Takeaways

• 46% of firms increased US cash balances in past year
• Safe assets hold 83% of short‑term investments, bank deposits at 42%
• Only 1% pilot stablecoins; 7% see them as highly relevant soon
• Investment policies now cover 75% of firms, emphasizing safety over yield

Pulse Analysis

The 2026 AFP Liquidity Survey underscores a clear shift toward cash discipline as corporate treasurers respond to a volatile macro environment. Political uncertainty, tariff disputes and lingering geopolitical tensions have prompted 46% of respondents to increase US cash balances, while 79% cite stronger operating cash flow as a driver. This surge in liquidity is not merely a defensive buffer; it reflects a strategic choice to preserve flexibility for opportunistic investments, acquisitions, or unexpected cost pressures. Consequently, traditional safe‑haven vehicles—bank deposits, money‑market funds and Treasury securities—continue to dominate short‑term portfolios, with 83% of balances allocated to these instruments.

Despite widespread awareness of digital‑asset innovations, stablecoins and tokenised products remain on the periphery of treasury operations. Only 1% of organisations are actively piloting stablecoins, and a modest 7% consider them highly relevant over the next three years. Regulatory ambiguity, highlighted by the recent GENIUS Act and pending OCC and FinCEN rules, reinforces treasurers' reluctance to allocate capital to assets lacking FDIC insurance or clear accounting guidance. Instead, the industry is gravitating toward incremental innovations such as real‑time money‑market funds and 24/7 investment sweeps, which promise liquidity enhancements without sacrificing safety.

The survey also reveals a maturation of governance frameworks: 75% of firms now operate under written short‑term investment policies, up from 74% last year, with safety ranked as the top objective by 61% of respondents. Larger, publicly‑owned companies are leading this trend, embedding stricter credit‑rating thresholds and counter‑party risk limits. As treasury teams balance the need for liquidity against the pressure to generate yield, the near‑term outlook points to modest portfolio adjustments rather than a wholesale embrace of crypto‑based solutions, reinforcing the primacy of risk mitigation in corporate finance today.