Lynq And ZeroBeta Connect Yield-Bearing Treasuries On Avalanche

Lynq and ZeroBeta have connected institutional borrowing and trading margin to tokenized U.S. Treasuries on the Avalanche network, allowing eligible pledged holdings to continue earning interest according to an announcement published Oct. 27 by Lynq.

The integration links Lynq’s settlement network with ZeroBeta’s BlueShift risk platform through a newly released collateral lock function. Institutional clients can place eligible holdings in escrow while the underlying tokenized Treasury asset continues accruing interest. Collateral remains on Lynq’s network from the initial pledge until its release.

Risk Management and Workflows

Under the arrangement, BlueShift handles risk calculations and collateral instructions while Lynq holds the assets and executes the movements. For secured borrowing, BlueShift instructs the network to pledge a tokenized Treasury asset in favor of a lender, sending instructions to provide more collateral or release a portion of the existing pledge as values cross agreed thresholds.

A separate workflow applies to digital asset trading, where BlueShift calculates the margin needed for open positions and new orders, accepting the Treasury asset as margin and directing pledges or releases through the same threshold-based process.

Platform Scale and Infrastructure

Lynq reports more than $89 million in platform assets and over 40 institutional firms onboarded. The platform identifies tZERO Securities as its operator and states that Arca Labs, Tassat Group, and tZERO Group developed the network, which uses Yield-in-Transit technology to calculate and distribute interest in real time.

Key facts

• Lynq and ZeroBeta integrated institutional borrowing and trading margin with tokenized U.S. Treasuries on Avalanche.
• The collateral lock function allows pledged holdings to keep earning interest while in escrow.
• BlueShift monitors collateral requirements and directs Lynq to pledge, top up, or release assets.
• Lynq reports over $89 million in platform assets and more than 40 institutional firms onboarded.