What to Know
- Lynq Network migrated to a dedicated Avalanche L1 to enable real-time institutional payments and collateral transfers.
- The network already connects 30+ institutions and is backed by infrastructure that has processed over $2.5 trillion in transactions.
- Lynq’s Yield-in-Transit technology allows institutions to keep earning yield on capital until settlement happens.
Institutional crypto settlement is getting a major upgrade as Lynq Network has officially migrated its infrastructure to a dedicated Avalanche Layer 1 blockchain, aiming to make real-time payments and collateral movement faster, smoother, and more reliable for large financial institutions.
The move was announced by Tassat Group, the company behind Lynq’s infrastructure. The upgrade is designed to help institutions move money instantly while keeping their capital productive instead of sitting idle during long settlement periods.
Why This Upgrade Matters
In traditional finance, settlement delays can create major inefficiencies. Money often remains locked between transactions for hours or even days, reducing liquidity and increasing operational risk.
Lynq is trying to solve that problem by allowing institutions to transfer funds and manage collateral in real time. This means firms can settle trades instantly while still earning yield on their assets until the very moment they are used. The network already supports more than 30 institutional partners, including Crypto.com, Galaxy, FalconX, Fireblocks, Wintermute, and B2C2. The infrastructure powering Lynq has reportedly processed over $2.5 trillion in transactions so far.
Built on Scalable Technology
The foundation behind Lynq comes from TassatPay, a blockchain payment platform previously used by several U.S. banks for instant tokenized payments. The same technology also powered Signature Bank’s Signet network, one of the earliest examples of always-on bank settlement systems.
While those earlier systems worked well inside closed banking environments, moving capital across different institutions and trading venues still remained difficult. Lynq expands that model into digital asset markets by creating a shared settlement layer where institutions can move funds instantly between counterparties.
Why Avalanche Was Chosen
Tassat said the decision to move Lynq onto a dedicated Avalanche L1 came down to performance, stability, and control. The Avalanche network gives Lynq faster transaction finality, predictable speeds, and a permissioned environment where institutions can manage validators, network settings, and data privacy more closely. Transactions settle within seconds, which is critical for large-scale financial operations.
“Our clients need an institutional grade solution that resembles critical capital markets infrastructure,” said Jerald David, CEO of Lynq. “Avalanche provides us with a dedicated, permissioned environment where our clients can optimize for speed, stability, and data privacy all day one requirements for institutional adoption.”
Migration Completed Without Disruption
Tassat confirmed that the migration was completed with “full state continuity,” meaning all existing positions, integrations, and workflows carried over smoothly without affecting operations.
“The technology proved to be rock-solid throughout this process,” said Andre Frank, COO of Tassat. “The migration was remarkably smooth, and we have full confidence in the permissioning model and security.” The company also highlighted measurable improvements after the migration, including faster processing during busy trading periods and more consistent network performance.
One of Lynq’s key products is its Yield-in-Transit fund called TFND. The fund has reportedly reached around $90 million in assets and has generated more than $235,000 in interest for participants. The system allows interest to accrue every two seconds while funds remain transferable as settlement assets. This helps reduce the problem of idle capital, something many institutions struggle with in traditional settlement systems.
A Bigger Shift
The Lynq migration reflects a broader trend where financial institutions are increasingly exploring blockchain infrastructure for payments, settlement, and treasury operations. “This upgrade is about more than performance, it’s about modernizing Lynq’s foundation to support its next phase of institutional growth,” said Glen Sussman, CEO of Tassat.
Mike Manning, Head of Institutional Finance at Ava Labs, added that Lynq shows how institutions can build settlement infrastructure “on their own terms” while still remaining connected to broader blockchain ecosystems. As more institutions look for faster and more efficient settlement systems, projects like Lynq could play a major role in bringing real-world financial operations further on-chain.
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