Lynq and ZeroBeta Integrate Tokenized Treasuries on Avalanche

The integration utilizes Lynq’s collateral lock feature, which allows Treasury holdings to stay on the network while serving as security for lenders or trading counterparties. BlueShift monitors margin requirements in real time, automatically instructing the settlement layer to pledge or release assets as market conditions shift. This workflow eliminates the need to move assets off-chain, ensuring that Yield-in-Transit technology continues to distribute interest payments to holders even while their capital is committed.

Lynq CEO Jerald David stated that the collaboration solves a core efficiency problem, allowing firms to bridge the gap between asset utilization and capital growth. By linking ZeroBeta’s risk oversight with Lynq’s settlement network—which currently supports over $89 million in assets and 40 institutional participants—the companies aim to reduce the volume of idle collateral in the digital asset space. While competitors like BNY and Citadel have recently executed similar tokenized financing trades, this Avalanche-based setup focuses on continuous, automated collateral management for institutional portfolios.