Collateral Lock allows institutional participants to designate on-platform assets as collateral while continuing to earn interest

Lynq, the real-time, interest-bearing settlement network, today announced the launch of enhanced features for collateral and margin management, enabling clients additional ways to deploy collateral on platform. Through the newly announced Collateral Lock, clients can now send peer-to-peer transactions, as well as lock and allocate assets in dedicated wallets on Lynq to support more efficient capital deployment across trading and collateral workflows. Evolving from how clients use escrow agents and third parties to hold and safeguard capital, Lynq’s Collateral Lock functionality allows clients to do so on platform.

The new capability allows Lynq participants to designate assets as collateral for counterparties and exchanges while those assets remain locked to prevent concurrent use. This enables institutional clients to meet collateral and margin requirements within the Lynq environment, maximizing capital on platform while reducing the need to move assets across multiple venues or accounts.

In addition, Lynq participants will be able to:

• Deploy prefunded collateral to a dedicated wallet for safekeeping until the collateral is ready to be deployed
• Post collateral into Collateral Lock and release it when an off platform action is completed
• Continue receiving interest on assets held on platform while those assets are being used as collateral
• Apply those assets as settlement funds when transactions occur
• Release collateral designations and redeploy assets across other trading or settlement activities on the network

This functionality is designed to improve capital efficiency, simplify collateral management across venues, and reduce operational friction in institutional digital asset markets. This is the first in a series of platform enhancements that are being developed based on feedback from the growing institutional client base.

“Capital efficiency and collateral mobility are becoming defining features of next-generation financial infrastructure,” said Jerald David, CEO of Lynq. “By enabling Collateral Lock on Lynq, we are providing clients with the ability to safely store their collateral, continue earning interest and then authorize the release and transfer of their collateral upon completion of another leg of the transaction.”

As institutional participation in digital markets expands, the ability to coordinate collateral, settlement, and liquidity across counterparties is becoming increasingly important. Lynq’s expanded collateral and margin functionality supports this shift, allowing participants including B2C2, Crypto.com, FalconX, Galaxy, and Wintermute to manage capital more efficiently within a shared settlement environment.

Specifications for the functionality are now available in Lynq’s developer portal.

About Lynq:

Lynq operates a real-time settlement solution that delivers interest to institutional clients. Lynq enables clients to securely manage trading operations and settle with counterparties instantaneously while earning interest, minimizing counterparty risk, and managing liquidity. Lynq’s use of Tassat’s patented Yield in Transit™ functionality enables institutional clients to receive interest down to the two second block. For more information, please visit https://lynq.network.

©️ Digital Asset Settlement Network, LLC (d/b/a Lynq). Lynq is not a registered broker-dealer, funding portal, underwriter, investment bank, investment adviser or investment manager, and is not providing brokerage, investment banking or underwriting services, recommendations or investment advice to any person. Lynq’s platform is operated by tZERO Securities, LLC, a broker-dealer registered with the SEC and a member of FINRA and SIPC. More information about tZERO Securities may be found at https://brokercheck.finra.org/. All digital asset securities are custodied by tZERO Digital Asset Securities, LLC, a special purpose broker-dealer registered with the SEC and a member of FINRA and SIPC. tZERO Digital Asset Securities, LLC operates in accordance with the SEC's statement, dated December 23, 2020, regarding the Custody of Digital Asset Securities by Special Purpose Broker-Dealers. Digital asset securities may not be "securities" as defined under the Securities Investor Protection Act (SIPA)-and in particular, digital asset securities that are "investment contracts" under the Howey test but are not registered with the Securities and Exchange Commission are excluded from SIPA's definition of "securities"-and thus the protections afforded to securities customers under SIPA may not apply. More information about tZERO Digital Asset Securities may be found at https://brokercheck.finra.org/. All brokerage services are subject to each of tZERO Securities, LLC’s and tZERO Digital Asset Securities, LLC’s customer agreement, privacy policy and other disclosures, available here.

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