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Today settlement network Lynq announced that it has 30 institutional members and has reached $89 million in assets on the platform after launching in July 2025. While there’s much debate about whether stablecoins should earn yield or not, Lynq addresses the interest issue by using tokenized money market funds (MMFs) as a payment instrument.
The solution was founded by Arca, which issues the TFND tokenized MMF on the Avalanche network; tZero, which provides the broker-dealer license and custodial functions; and Tassat, which developed the payment network. The launch filled an important gap. With the banking crisis in 2023, digital asset firms lost two commonly used 24/7 payment networks simultaneously, Signet and SEN. Signet was based on Tassat technology, so several hundred digital asset firms are already set up to use it. Given that the payment instrument delivers yield, institutions never stop earning.
This positioning raises questions about how Lynq compares to stablecoin-based settlement networks. There’s a lot of crossover between stablecoins and tokenized MMFs, particularly in the backing assets. The three key differentiators are: regulatory treatment, interest generation, and accessibility. MMFs earn interest, and stablecoins are more accessible because transfers don’t require whitelisting. While this last point is a disadvantage for retail payments, for an institutional settlement network, it is not as big an issue.
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