A host of firms are partnering up to launch a digital real-time settlement network called Lynq.
A Tuesday (April 22) press release stated that Lynq is scheduled to go live in the second quarter of 2025, following more than a year of development and industry consultation.
The platform was developed by Arca Labs, Tassat Group and tZERO Group and aims to address some of the common pain points in settlement involving digital assets, such as market fragmentation, counterparty risk and evolving regulatory requirements.
The release said the Lynq network will offer yield for its “institutional clients” — including banks, hedge funds, investment advisors and similar organizations that invest on behalf of others.
The network is powered by a tokenized treasury fund, the Arca Institutional U.S. Treasury Fund (TFND), which issues shares as digital asset securities, according to the release.
“Lynq operates within a legal framework that leverages tZERO’s Broker-Dealer and Special Purpose Broker-Dealer licenses, as well as Arca’s Registered Investment Adviser and Delaware Trust,” the release said. Tassat is the provider of Lynq’s blockchain infrastructure.
Additional key Lynq partners include B2C2, Galaxy Digital and Wintermute, which are assisting with counterparty onboarding and providing initial liquidity.
The release also identified U.S. Bank as Lynq’s qualified cash custodian and treasury management services provider. In addition, Avalanche will supply the open-source Layer 1 blockchain infrastructure for issuing and rebalancing TFND shares.
The thinking behind the partnership combination is to provide “segregated account security, transparent proof of reserves and broad ecosystem connectivity,” the release said.
Executives from the partner firms highlighted Lynq’s focus on capital efficiency, security and robust infrastructure to encourage institutional participation in the digital assets space.
Katryna Hanush, the managing director of Wintermute, noted in the press release that the platform “streamlines onboarding, subscription, and redemption, offering counterparties a safer and more efficient way to transact.”
“We see Lynq as a key part of the next generation of institutional infrastructure,” B2C2 Group CEO Thomas Restout said in a statement.
Speaking of payment rails involving digital assets, Circle is rolling out a stablecoin-powered payments and cross-border remittance network in May.
