Key Takeaways:
(New York) – Tassat Group Inc. has upgraded its Lynq real-time settlement and collateral network, which has handled over $2.5 trillion in transactions, to a dedicated Avalanche Layer 1 (L1) blockchain to better serve institutional capital markets.
"This upgrade is about more than performance—it’s about modernizing Lynq’s foundation to support its next phase of institutional growth," said Glen Sussman, CEO of Tassat. "By evolving Tassat’s core blockchain infrastructure to incorporate public-permissioned architectures like Avalanche, we preserve the security, privacy, and control our clients require while unlocking greater interoperability and roadmap innovation."
The migration moves Lynq onto a permissioned Avalanche subnet, combining the performance of a public blockchain with the controlled environment required by regulated financial firms. The network provides a shared settlement layer for over 30 partners, including B2C2, Crypto.com, FalconX, Fireblocks, Galaxy, and Wintermute. The move was completed with full state continuity, ensuring no disruption to existing positions or workflows.
The selection of Avalanche followed an extensive evaluation, with Tassat highlighting the network's near-instant finality, predictable performance, and native support for permissioned environments as key factors. "Avalanche provides us with a dedicated, permissioned environment where our clients can optimize for speed, stability, and data privacy—all day one requirements for Institutional adoption," said Jerald David, CEO of Lynq. The architecture allows Lynq to maintain interoperability with Avalanche's public C-Chain, enabling access to broader asset pools while managing settlement and records on a private L1.
The upgrade represents a significant step in bringing traditional financial infrastructure on-chain. Lynq extends the model used in TassatPay, which powers real-time, tokenized payments for several U.S. banks, into the digital asset space. This allows institutional clients to settle transactions and move collateral instantly across counterparties within the same environment.
One of the network's core features is the yield-in-transit fund (TFND), which has approximately $90 million in assets. The fund, which leverages Tassat's patented technology, allows capital to accrue interest every two seconds, remaining productive even while in transit as a settlement asset.
"Lynq is a great example of how institutions can design settlement infrastructure on their own terms using Avalanche," said Mike Manning, Head of Institutional Finance at Ava Labs. "By using a permissioned Avalanche network that is natively interoperable with the permissionless C-Chain, Lynq achieves both control over privacy, performance and compliance, while maintaining connection with the broader asset pools it is used to settle."
The successful migration validates the growing maturity of EVM-compatible blockchains for institutional-grade financial applications. It positions Lynq to meet rising demand for scalable, blockchain-based settlement and collateral mobility, bridging the gap between closed banking networks and open on-chain ecosystems.
This article is for informational purposes only and does not constitute investment advice.
