Introducing Lynq: A New Standard for Institutional Digital Asset Settlement

Arca Labs
Apr 22, 2025
After two years of rigorous development, we’re proud to introduce Lynq—the first real-time settlement solution that not only enables instantaneous transactions but also delivers yield back to its network participants. Purpose-built to align with today’s regulatory frameworks, Lynq represents a major leap forward in the evolution of digital assets infrastructure.
 
Built By the Industry, For the Industry
Developed by Arca Labs, Tassat, and tZero in close partnership with some of the most respected leaders in the digital asset space, this settlement architecture was crafted through deep consultation with prime brokers, market makers, exchanges, and stablecoin issuers. The result? A solution created not just for the industry—but by it.
 
For Arca Labs, Tassat, and tZero, solving one of the most pressing challenges in digital finance was a top priority: slow settlement times, counterparty credit risk, scaling limitations, and yield. As digital asset transaction volumes surge beyond what traditional infrastructure can handle, the limitations of legacy systems become more apparent. Current settlement processes are restricted to traditional business hours, Monday through Friday—which simply doesn't align with the always-on nature of digital assets.
 
This disconnect not only slows down operations but also increases the risk of outages, errors, and inefficiencies. That’s why we set out to build a solution that supports institutional-grade settlement—seamless, secure, and truly 24/7/365.
 
Delivering Yield Back to Network Participants
At the heart of Lynq is a commitment to building a solution that reflects the values of the digital assets industry—decentralization, transparency, and shared success. True to this ethos, we designed Lynq so that its benefits extend beyond the creators and reach every participant in the network.
 
This is where Arca’s Institutional U.S. Treasury Fund (TFND) plays a critical role. As a tokenized fund investing in short-duration U.S. government bonds, TFND serves as the settlement foundation for all transactions on the network. Building on this, Tassat’s patent-pending “yield in transit” mechanism enables participants to earn interest in real time—calculated in five-second increments and distributed daily.
 
By integrating yield directly into the settlement layer, Lynq doesn't just improve speed and efficiency—it redefines how value flows across financial networks.
 
Working Within Regulatory Compliant Frameworks 
While the industry continues to anticipate clearer regulatory guidance in the U.S. and globally, the exact timing remains uncertain. Contrary to the narrative often portrayed in mainstream media, we believe most participants in the digital asset space are eager to operate within current regulatory frameworks—and many are making the effort to already do so. 
 
That’s why Arca Labs and its core partners have prioritized regulatory alignment from day one. Lynq is built to function within a robust legal framework, leveraging tZERO’s Broker-Dealer and Special Purpose Broker-Dealer licenses, alongside Arca’s Registered Investment Adviser status. 
This thoughtfully constructed architecture—combined with Tassat’s proven, real-time blockchain infrastructure—offers institutional-grade features such as segregated account security, transparent proof of reserves, and seamless connectivity across the ecosystem. It’s a modern solution built on the pillars of trust, compliance, and innovation.
 
Learn more about Lynq can offer your organization: lynq.network. 
 
About Lynq
Lynq is a real-time digital asset settlement solution developed through a strategic collaboration between Arca, Tassat, and tZERO. The platform combines institutional-grade infrastructure with regulatory alignment to deliver a seamless, secure, and efficient settlement experience.
tZERO provides the regulatory backbone through its Broker-Dealer and Special Purpose Broker-Dealer licenses. Arca contributes to its Institutional U.S. Treasury Fund (TFND, which is advised by its registered investment adviser, Arca Capital Management. Tassat powers the system’s real-time blockchain infrastructure and technology.
 

 © Digital Asset Settlement Network LLC. All rights reserved. Digital Asset Settlement Network LLC is a Delaware limited liability company. The information contained in this communication is confidential and intended solely for the use of the individual or entity to whom it is addressed. It may not be distributed, reproduced, or used for any purpose other than its intended use without the prior written consent of Digital Asset Settlement Network LLC.

Digital Asset Settlement Network LLC does not provide investment, legal, tax, or accounting advice. Digital Asset Settlement Network LLC is not a U.S. registered broker dealer. This communication does not constitute an offer to sell or a solicitation of an offer to buy any securities or investment products, nor should any information herein be relied upon for the purpose of making investment decisions. Please consult with a qualified advisor before making any financial or operational decisions based on the contents of this message.

Disclosures
©TASSAT GROUP INC. ALL RIGHTS RESERVED. The information contained in this document is confidential and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Tassat Group Inc.

© Arca Capital Management LLC, a registered investment adviser with the SEC, is a wholly owned subsidiary of Arca Labs LLC, and serves as the adviser to the Arca Institutional U.S. Treasury Fund. Registration with FINRA or the SEC does not imply a specific level of skill or training. Arca Labs LLC does not provide investment advice and this communication is
in no way a solicitation or an offer to sell securities or investment advisory services.

© tZERO Group, Inc., and its wholly-owned subsidiary, tZERO Technologies, LLC, is not a registered broker-dealer, funding portal, underwriter, investment bank, investment adviseror investment manager, and is not providing brokerage, investment banking or underwriting services, recommendations or investment advice to any person. tZERO Securities, LLC is 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/.
 
tZERO Digital Asset Securities, LLC is a broker-dealer registered with the SEC and a member of FINRA . It operates in accordance with the SEC s statement, dated December 23, 2020, regarding the Custody of Digital Asset Securities by Special Purpose Broker-Dealers. More information about tZERO Digital Asset Securities may be found at https:// brokercheck.finra.org/.
 

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Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed are those of the author, and are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. Arca disclaims any obligation to update or revise any statements or views expressed herein. Past performance is not a guarantee of future results and there can be no assurance that any future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which is believed to be accurate, but has not been independently verified. Arca and/or certain of its affiliates and/or clients may now, or in the future, hold a financial interest in investments that are the same as or substantially similar to the investments discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and Arca and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities, or a solicitation to provide investment advisory services.