FalconX, a prominent digital asset prime broker, has joined Crypto.com as a partner within the Lynq institutional settlement network. This move signifies a major step forward for Lynq, a real-time, interest-bearing settlement network focused on enhancing capital efficiency, mitigating counterparty risk, and adapting to evolving regulatory frameworks within the digital asset space. FalconX will function both as a participant and a liquidity provider within the Lynq network, leveraging its access to over 400 tokens to bolster the network's capabilities.
This partnership follows Crypto.com's integration with Lynq and Fireblocks, offering access to over 2,000 clients via its interface. The growing consortium of partners, including B2C2, Galaxy, and Wintermute, showcases a strong industry alignment behind Lynq's mission to provide real-time settlement solutions.
Developed through a collaboration between Arca Labs, Tassat Group, and tZERO Group, with key support from Avalanche and U.S. Bank, the Lynq network aims to deliver a compliant and scalable platform for digital asset settlements. Lynq was created to address persistent issues that limit the efficient, secure, and compliant settlement of digital asset transactions. While advancements have been made in custody, Layer 2 scalability, and institutional wallet solutions, a unified framework for intraday liquidity, yield generation, and counterparty coordination has remained elusive.
Lynq aims to solve key challenges in digital asset settlement, including same-day liquidity, counterparty risk mitigation, yield on idle capital, and operational alignment with existing regulatory frameworks. The network is powered by the Arca Institutional U.S. Treasury Fund (TFND), which invests primarily in U.S. Treasuries and issues shares as digital asset securities. Lynq operates within a legal framework that leverages tZERO's broker-dealer licenses, as well as Arca's registered investment advisor and Delaware Trust. Tassat Group provides the blockchain infrastructure for Lynq's real-time settlement capabilities.
Jerald David, CEO of Lynq, emphasized FalconX's importance, noting that as a trusted prime brokerage and major market participant, FalconX will be vital in unlocking network liquidity. The partnership aims to offer mutual clients a compliant solution that addresses the needs of institutional market participants.
Bob Rutherford, VP & Head of Operations at FalconX, echoed this sentiment, highlighting the significance of building infrastructure that provides tangible client benefits like enhanced capital efficiency, real-time settlement, and increased interest.
Lynq's commitment to creating a unified, secure, and efficient settlement network reflects a broader trend toward tokenization in the financial industry. Lynq uses Tassat's "yield in transit" functionality, meaning institutions can receive interest based on intraday fund holdings. Interest is sent to Lynq users in five-second increments and distributed daily. The platform also uses a patent-pending "Yield-in-Transit" feature, allowing clients to accrue interest on Fund shares based on their exact time and duration of ownership.
With the addition of FalconX, Lynq strengthens its foundation and accelerates the move toward scalable solutions that benefit the entire digital asset industry. The platform is set to go live in the second quarter of 2025, marking a significant milestone after more than a year of development and industry consultation.
