Arca Labs, Tassat Group, Inc., and tZERO Group, Inc. announced the launch of Lynq, a real-time, yield-bearing settlement network powered by a tokenized treasury fund custodied at a special purpose broker-dealer.
This announcement comes after more than a year of market engagement, platform development and the creation of the Arca Institutional U.S. Treasury Fund “TFND”, a tokenized treasury fund “that issues shares as digital asset securities.”
Scheduled for go-live in Q2, 2025, Lynq was developed in collaboration with digital asset institutions to “deliver an efficient, scalable, and inclusive settlement solution.”
Lynq’s launch partners, which include B2C2, Galaxy (TSX: GLXY), and Wintermute, will assist with “counterparty onboarding to accelerate network adoption and drive initial liquidity.”
Additional partners include U.S. Bank, which will “provide treasury management services to the Lynq ecosystem and serve as Lynq’s qualified cash custodian, and Avalanche, which will provide the open-source Layer 1 blockchain network on which TFND shares will be issued and rebalanced.”
Lynq aims to address the “challenges of digital asset settlement, including market fragmentation, counterparty risk, and evolving regulatory frameworks, while returning yield to institutional clients.”
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.”
This architecture, paired with Tassat’s real-time blockchain infrastructure, provides clients “with segregated account security, transparent proof of reserves, and broad ecosystem connectivity, all on a familiar and trusted platform.”
As noted in the update, Lynq is a broker-dealer operated real-time settlement utility powered by “a tokenized treasury fund custodied at a special purpose broker-dealer.”
Developed by Arca Labs, Tassat, and tZERO Group, and supported by a syndicate of digital asset and tradfi institutions, Lynq offers clients “a scalable and inclusive settlement service on a proven end-to-end platform.”
Built by the industry, for the industry, Lynq delivers yield and transparent proof of reserves within “a bankruptcy-remote architecture that minimizes counterparty risk.”
Lynq’s Yield-in-Transit technology reportedly enables users to “maximize earned interest even during settlement operations, driving unprecedented capital efficiency.”
Yield is calculated by the fund administrator, Ultimus Fund Solutions.
