Lynq and ZeroBeta link tokenized Treasuries to institutional trading

The collaboration introduces a collateral lock mechanism that keeps Treasury holdings on the Avalanche-based Lynq network throughout the duration of a pledge. When an institution requires secured borrowing or trading margin, the BlueShift risk engine calculates necessary thresholds and issues instructions to Lynq, which then manages the movement of the assets. This setup ensures that the underlying securities stay active in the interest-bearing environment even when backing financial positions.

Lynq CEO Jerald David emphasized that the system removes the traditional trade-off between utilizing capital for financing and earning passive returns. While the companies have not disclosed specific margin rates or identified the initial firms using the new connection, Lynq reports that its network currently holds over $89 million in assets across more than 40 onboarded institutional entities. The integration leverages BlueShift’s real-time risk assessment capabilities to automate margin calls and collateral adjustments, mirroring the operational workflows found in traditional finance.