Digital Asset Settlement Network Lynq will utilize Tokenized Multi-Manager Funds for transactional purposes.
The Lynq settlement network, a real-time, interest-bearing, tokenized settlement platform, is revolutionizing digital asset transactions within institutional financial markets. Designed to fill the capital management and settlement gap left by the exit of traditional banks like Signature and Silvergate, Lynq offers secure, efficient, and continuous post-trade settlement infrastructure [1][4].
Key features of Lynq include 24/7 real-time tokenized settlement using the Avalanche blockchain, interest-in-transit technology, a broker-dealer-operated network, integration with institutional treasury workflows, and support from traditional financial institutions like U.S. Bank [1][2][3][4][5]. The platform unifies fragmented digital asset settlements and connects trusted counterparties on one platform, reducing counterparty risk by operating within a bankruptcy-remote architecture [3].
Lynq distinguishes itself from traditional banking networks in several ways. It offers real-time, continuous settlement, supports tokenized digital assets, enables interest on funds during settlement, uses blockchain technology, and has a focus on crypto-native and digital asset institutional firms [1][2][3][4][5]. In contrast, traditional banking networks are often batch-based, primarily support fiat currency, do not accrue interest during settlement delays, rely on legacy systems, and have potential higher counterparty risk.
By combining speed, transparency, and capital efficiency, Lynq presents a purpose-built, modern alternative to legacy financial infrastructure for digital asset markets [1][2][3][4][5]. The platform's potential to revolutionize the industry is evident, offering a frictionless approach to asset switching that may reduce the need to keep significant assets in bank deposits [2].
However, the take-up of the Arca TFND token, which is based on the ArcaCoin and its own tokenized MMF, has been modest to date, with just $430,000 in issuance [6]. Meanwhile, the de-banking of the crypto sector is attributed to Operation Chokepoint 2.0 [7].
Sources: [1] Ledger Insights. (2022, April 13). Lynq launches tokenized settlement network for digital assets. Retrieved from https://ledgerinsights.com/lynq-launches-tokenized-settlement-network-for-digital-assets/ [2] Ledger Insights. (2022, April 13). Lynq launches tokenized settlement network for digital assets. Retrieved from https://ledgerinsights.com/lynq-launches-tokenized-settlement-network-for-digital-assets/ [3] Ledger Insights. (2022, April 13). Lynq launches tokenized settlement network for digital assets. Retrieved from https://ledgerinsights.com/lynq-launches-tokenized-settlement-network-for-digital-assets/ [4] Ledger Insights. (2022, April 13). Lynq launches tokenized settlement network for digital assets. Retrieved from https://ledgerinsights.com/lynq-launches-tokenized-settlement-network-for-digital-assets/ [5] Ledger Insights. (2022, April 13). Lynq launches tokenized settlement network for digital assets. Retrieved from https://ledgerinsights.com/lynq-launches-tokenized-settlement-network-for-digital-assets/ [6] Ledger Insights. (2022, March 2). Arca TFND token issuance: 91% held in a single wallet. Retrieved from https://ledgerinsights.com/arca-tfnd-token-issuance-91-held-in-a-single-wallet/ [7] Ledger Insights. (2022, January 25). De-banking of crypto sector continues: USDF Consortium blocked from launching despite meeting regulator needs. Retrieved from https://ledgerinsights.com/de-banking-of-crypto-sector-continues-usdf-consortium-blocked-from-launching-despite-meeting-regulator-needs/
- The digital asset industry is witnessing an evolution of post-trade settlement infrastructure with the emergence of a blockchain-based platform like Lynq, revolutionizing transaction settlement within institutional financial markets.
- Built to address the capital management and settlement void left by traditional banks' exit, Lynq offers secure, efficient, and continuous post-trade settlement infrastructure, harnessing the power of technology, artificial intelligence, and data-and-cloud-computing.
- Lynq's distinguishing advantages include real-time, continuous settlement, support for tokenized digital assets, interest-in-transit technology, and integration with institutional treasury workflows, backed by traditional financial institutions like U.S. Bank.
- Fintech innovation is furthering the digital asset industry with platforms like Lynq, unifying fragmented digital asset settlements and connecting trusted counterparties on one platform, thus reducing counterparty risk.
- Traditional banking networks are being challenged by blockchain-based networks, which offer benefits such as speed, transparency, and capital efficiency, thereby presenting a modern alternative to legacy financial infrastructure for digital asset markets as well as the banking-and-insurance sector.
- Despite the transformative potential of digital asset networks like Lynq, the adoption of their native tokens may encounter initial challenges, as exemplified by the moderate issuance of the Arca TFND token, based on the ArcaCoin and its own tokenized MMF.
