Lynq Real-Time Settlement Network to Launch with Tokenized Treasury Fund Backing

Arca Labs, Tassat Group, and tZERO Group have announced the launch of Lynq, a real-time settlement network underpinned by a yield-bearing, tokenized U.S. Treasury fund. The platform, set to go live in the second quarter of 2025, will operate with institutional support and regulatory infrastructure to facilitate efficient and compliant digital asset transactions.

The new network is built on over a year of development and collaboration across the digital asset ecosystem. At its core is the Arca Institutional U.S. Treasury Fund “TFND”, a digital asset security issued on Avalanche’s Layer 1 blockchain. TFND will serve as the yield-generating mechanism backing Lynq’s settlement operations, while custody is provided by a special purpose broker-dealer.

B2C2, Galaxy, and Wintermute to provide counterparty liquidity

Lynq will begin operations with support from launch partners B2C2, Galaxy, and Wintermute, which will provide counterparty onboarding and liquidity. U.S. Bank will act as the qualified custodian for cash, and Avalanche will maintain the technical foundation for token issuance and fund rebalancing.

Rayne Steinberg, CEO of Arca; Zain Saidin, CEO of Tassat; and David Goone, CEO of tZERO, jointly stated, “Lynq is an end-to-end settlement utility built by the industry, for the industry. Our goal is to provide a quality settlement service that can meet the liquidity, scale, and security needs of our digital asset clients, while maximizing capital efficiency for all network participants.”

Lynq addresses common institutional challenges in digital asset settlement, including market fragmentation, counterparty risk, and regulatory compliance. The platform integrates tZERO’s Broker-Dealer and Special Purpose Broker-Dealer licenses and Arca’s Registered Investment Adviser and Delaware Trust infrastructure. Tassat’s blockchain framework enables real-time operations, segregated account architecture, and transparent proof of reserves.

Thomas Restout, Group CEO of B2C2, commented, “At B2C2, we’ve built our reputation on delivering reliable, institutional-grade liquidity across all market conditions. Partnering with Lynq is a natural extension of that commitment — enabling us to offer clients even greater capital efficiency through real-time, yield-bearing settlement. As the market continues to evolve, we see Lynq as a key part of the next generation of institutional infrastructure.”

Jason Urban, Global Head of Trading at Galaxy, commented, “Mass institutional participation in the digital asset market requires robust infrastructure. Galaxy is working to drive innovation across the ecosystem through strategic collaboration, and Lynq represents an important advancement by delivering real-time settlement capabilities that offer yield-bearing solutions tailored for institutional clients.”

Katryna Hanush, Managing Director at Wintermute, commented, “We’re seeing a clear shift toward greater institutional participation, and Lynq is designed to support this evolution. It streamlines onboarding, subscription, and redemption, offering counterparties a safer and more efficient way to transact through settlement rails that integrate regulatory clarity, real-time operations, and yield.”

Jay Martin, President of U.S. Bank Global Fund Services, commented, “We are proud to partner with Lynq and provide custody services that meet the compliance and regulatory standards that institutional clients require.”

The platform’s rollout positions Lynq as a new model in digital market settlement, offering institutional investors both capital efficiency and operational reliability in real-time, while integrating regulated infrastructure into tokenized finance.