Arca Labs has partnered with Tassat, the tokenized payment technology firm and tZERO the regulated broker-dealer to launch the Lynq settlement network. Rather than payments using bank money, the Arca-issued tokenized treasury fund TFND will act as the payment instrument. Market maker B2C2, Galaxy Digital, and Wintermute plan to onboard clients and US Bank will provide custody for the underlying Treasuries and cash. The settlement network will launch later this quarter.
One of the advantages of partnering with Tassat is its technology was used by Signature Bank and is currently used by Customers Bank for its instant payment network, which is popular with crypto institutions. Hence, many firms will already have integrated its technology. However, crypto institutions need to onboard to the network via tZERO which performs KYC and other compliance steps. The solution is based on the Avalanche blockchain network.
“Lynq is an end-to-end settlement utility built by the industry, for the industry,” said Rayne Steinberg, CEO of Arca; Zain Saidin, CEO of Tassat; and David Goone, CEO of tZERO. “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.”
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