Lynq Onboards Institutional Clients to Tokenized Settlement Network

Lynq, a digital asset settlement platform co-developed by Arca Labs, Tassat, and tZERO Group, has begun onboarding its first institutional clients, including Crypto.com, Wintermute, GSR, Archax, and multiple over-the-counter trading desks. This milestone marks a significant step in the adoption of tokenized settlement infrastructure, as traditional financial institutions increasingly seek real-time, blockchain-based solutions for digital asset transactions [1].

The platform, which launched in July, was designed to enable instant settlements between crypto market participants, offering an alternative to traditional banking rails that have become increasingly unstable in the wake of the collapse of Silvergate and Signature Bank. Lynq leverages Tassat’s infrastructure—previously used by Signature Bank’s Signet network—and tZERO’s broker-dealer capabilities to support compliance and onboarding processes [2].

A key feature of Lynq is its use of the Arca Institutional U.S. Treasury Fund (TFND), a tokenized money market fund issued on the Avalanche blockchain. This allows trades to settle instantly and continuously, 24/7, without the need for intermediaries. The platform also includes an “interest-in-transit” mechanism, enabling counterparties to earn yield on intraday balances as funds move between platforms [3].

Among the initial onboarding group are market makers and liquidity providers such as 1Konto, FinchTrade, and JST Digital. Lynq has disclosed that approximately 50 clients are at various stages of onboarding, with additional firms like B2C2 and Galaxy Digital expected to join. U.S. Bank serves as the qualified custodian for cash on the platform, managing treasury operations [4].

This development aligns with broader industry trends, as traditional financial institutions increasingly test blockchain-based settlement systems. For instance, JPMorgan is developing its own tokenized deposit system, and other banks are exploring stablecoin use for internal transfers. Lynq aims to serve as a purpose-built, industry-driven network that fills the post-Signature Bank gap for crypto-native firms seeking institutional-grade rails while avoiding legacy systems [5].

The onboarding of major institutional players such as StoneX and Archax underscores confidence in Lynq’s infrastructure and its capacity to meet the demands of institutional-grade settlement. These clients bring a history of innovation in digital assets and fintech, reinforcing Lynq’s strategic positioning in the evolving crypto market [6].

Lynq’s platform is built on the Avalanche blockchain, known for its high throughput, low latency, and robust security. This infrastructure supports the real-time processing capabilities necessary for institutional transactions. As more institutions explore tokenization, the availability of secure and efficient settlement solutions like Lynq becomes increasingly critical [7].

The growing interest in tokenized assets and real-time settlement systems is also supported by broader industry momentum. With tokenization gaining traction across multiple asset classes, the need for efficient and compliant settlement mechanisms is becoming more urgent. Lynq’s recent developments are aligned with this shift and could serve as a catalyst for further innovation in the digital asset space [8].

Source: [1] https://coinmarketcap.com/community/articles/6893eec9a6cc7553011eb004/

[2] https://bitcoinworld.co.in/lynq-crypto-settlement/

[3] https://financefeeds.com/lynq-onboards-first-institutional-clients-to-tokenized-settlement-network/