tZERO said on Sept. 28 that it has added Goldman Sachs’ Treasury money market fund FTIXX to Lynq, a settlement network for crypto institutions. Eligible U.S. institutional clients can place idle cash into the fund between trades, with transactions executed by SEC-registered broker-dealer tZERO Securities.
Goldman Sachs’ monthly filing with the SEC shows the fund had about $105 billion in net assets at the end of August. Of that total, FTIXX institutional shares accounted for $97.3 billion.
This is the first external fund connected to Lynq. Unlike BlackRock’s BUIDL and Franklin Templeton’s BENJI, Goldman Sachs did not issue a token for the product. Lynq is offering ordinary traditional institutional shares instead. To support the integration, Lynq connected with Mosaic, the liquidity investing platform under Goldman Sachs Asset Management.
Before Goldman Sachs joined, the network had already been running for more than a year and had onboarded more than 30 institutions. Assets parked on the network were disclosed at about $89 million in February 2026.
Lynq was built after SEN and Signet went offline
In March 2023, Silvergate shut down SEN. Days later, Signature was taken over and Signet stopped operating as well. After those two channels, which had handled most 24/7 transfers for U.S. crypto institutions, disappeared, dollar settlement across the sector became fragmented. Lynq’s website says the project was set up to fill that gap.
The legal entity behind the project is Digital Asset Settlement Network, LLC. It is operated as a joint venture by three institutions, has no publicly disclosed standalone financing, is open only to institutions that pass KYC and AML review, and has no token issuance plan.
Each partner brings a different function. Arca Labs is the innovation arm of digital asset manager Arca. In 2019, it launched the Arca US Treasury Fund, an early 40 Act fund that issued shares in the form of digital asset securities. tZERO was incubated by Overstock and later received strategic investment from Intercontinental Exchange, or ICE. It holds broker-dealer and special purpose broker-dealer, or SPBD, licenses. Tassat provides the settlement technology. Signet itself was a white-label version of TassatPay, and Customers Bank’s real-time payment network CBIT, now renamed cubiX, was also built on TassatPay.
In an April 2026 announcement, Tassat said systems running on its technology had processed more than $2.5 trillion in cumulative settlement volume.
Lynq CEO Jerald David took the role in May 2025. He previously served as president of Arca Labs and also worked for years at traditional derivatives exchanges including CME and NYMEX. The network completed its first live transaction on Avalanche C-Chain in July 2025. In June this year, it also became a founding member of the Avalanche Payments Collective alongside Franklin Templeton and others.
TFND is the settlement rail, while FTIXX serves as a liquidity sleeve
The asset Lynq uses for settlement is not FTIXX. It is TFND, a tokenized Treasury fund issued by Arca. Institutions deposit U.S. dollars into accounts at tZERO Securities and receive TFND shares in return. Those shares can then move in real time among participants on the network. Cash is held in custody by U.S. Bank, while the securities are custodied by tZERO Digital Asset Securities.
Lynq differs from a traditional transfer channel because it uses Tassat’s Yield-in-Transit technology. Interest is calculated with two-second block precision and paid daily. In April this year, the network migrated to an Avalanche permissioned dedicated L1. An Avalanche blog post published in April 2026 said the underlying fund TFND was about $90 million in size and had distributed more than $235,000 in interest to network participants.
The same framework was later extended to exchange margin.
In January and February 2026, crypto exchanges Crypto.com and EDX connected to the network. Market makers including Wintermute, GSR and Aquanow can use funds in their Lynq accounts directly as 24/7 trading margin, rather than posting cash to an exchange.
The two funds do not play the same role inside the network. TFND is the settlement asset that moves in real time between participants and accrues interest at the block level. FTIXX acts as a liquidity pool for idle cash, allowing institutions to park funds between trades and earn Treasury yield.
Lynq has added major crypto firms, but competition remains strong
Lynq’s client roster already includes several large crypto market makers and trading platforms. B2C2, Galaxy and FalconX were among the first users to go live. Wintermute, GSR, Crypto.com, Archax and FinchTrade joined later. Fireblocks supports institutional access through API integration.
Even so, the network remains relatively small, with the previously disclosed $89 million in parked assets. Its competition comes from two main directions.
One is bank-operated real-time payment networks. Customers Bank’s CBIT, now cubiX, absorbed a large number of former Signet clients after 2023. Circle also said at the time that it had switched to CBIT for U.S. dollar settlement related to USDC. Both systems run on Tassat technology, but CBIT moves bank deposits while Lynq moves interest-bearing fund shares.
The other is the direct use of tokenized money market funds at exchanges. BUIDL and BENJI have already been accepted by multiple exchanges as collateral. On the same day FTIXX joined Lynq, Franklin Templeton said it was extending its tokenized collateral service to Bybit, bypassing the intermediary settlement network.
Goldman adds a new selling point, but limits are still clear
Goldman Sachs gives Lynq a new institutional product to offer, but the constraints are just as visible. FTIXX is currently available only to U.S. clients, meaning market makers registered in offshore jurisdictions cannot use it for now. Because FTIXX shares have not been tokenized, the parties have not disclosed whether they can move across the network in real time like TFND or be used as exchange margin.
Jerald David has previously outlined a broader vision covering settlement, deposits and withdrawals, treasury management and even ETF creation and redemption. For now, though, adding one or two Wall Street funds is unlikely to restore the position Signet once held. Lynq’s path from here depends not only on expanding its menu of yield-bearing assets, but also on whether it can connect cross-exchange collateral with major derivatives venues and remove access barriers for offshore institutions.
