Lynq Launches Yield-Bearing Settlement Network for Institutional Clients
A new settlement network named Lynq is set to launch, powered by the Arca Institutional US Treasury Fund (TFND), which holds a portfolio of yield-bearing US Treasurys via the Avalanche Blockchain. Key details include:
- TFND mandates AML/KYC for subscribers and manages client funds with US Bank.
- Lynq partners with tZERO’s broker-dealer license and Tassat’s blockchain infrastructure, which has facilitated over $2.5 trillion in institutional settlements.
- B2C2, Galaxy, and Wintermute will onboard top clients to enhance adoption and liquidity.
- The aim is to facilitate fund flows to exchanges and support stablecoin issuers in creating and redeeming tokens on Lynq.
- Lynq offers “yield in transit,” allowing institutions to earn interest on intraday fund holdings, distributed every five seconds.
The stablecoin market is currently valued at approximately $230 billion, with projections suggesting it could reach $2 trillion within five years. Tokenized money market funds are also growing, exemplified by BlackRock’s BUIDL fund surpassing $2 billion in assets under management.
Lynq's goal is to enable interoperability between traditional and decentralized finance through tokenized securities settlement and permissioned liquidity pools, although its success remains to be seen post-launch.