FalconX teams with Crypto.com to integrate with Lynq’s real‑time institutional settlement network, enabling faster funding, yield‑on‑transfer, and improved capital efficiency
The settlement sector, particularly stablecoins, may be experiencing a surge in institutional interest in crypto, as evidenced by their 55.5% market capitalization increase over the past year.
FalconX, a digital asset prime brokerage that has executed over $1.5 trillion in trading volume, has become a launch partner for Lynq. This platform seeks to serve as a settlement layer for financial institutions and digital assets. FalconX is collaborating with Crypto.com, Galaxy, Wintermute, and other companies.
As regulatory clarity improves, the launch of Lynq could indicate the increasing institutional interest in digital assets.
Lynq CEO Jerald David informed Cointelegraph that FalconX, which claims to possess over 400 tokens, will serve as a liquidity provider and a participant on the Lynq network.
By a Tuesday announcement, Lynq, which was developed in collaboration with Arca Labs, Tassat Group, and tZERO Group, is designed to address the challenges of counterparty risk and the evolving regulatory frameworks.
Institutions seeking to introduce crypto products and adhere to stringent regulations may find those issues significant.
Settlement is the concluding stage of the cryptocurrency transaction process, during which funds are transferred between parties, and the transaction is documented on the blockchain.
Token generation events, which automatically distribute tokens to investors, the release of collateral held in a contract, and the transfer of tokens from one party to another are among the examples.
Atlas is an institutional settlement network operated by Anchorage Digital, a Web3 corporation specializing in institutions. BVNK, a London-based crypto company, is engaged in various crypto settlement procedures.
Examples of blockchain-based settlement networks include the “Project Ion” platform by a prominent US equities clearinghouse and Kinexys by J.P. Morgan.
“Participants are granted access to the Lynq Network at no cost, and transactions on the network are not subject to transaction fees,” David stated regarding the Lynq platform. Lynq generates revenue by extracting a tiny portion of the portfolio’s interest.
On Friday, the platform will begin its final user acceptability testing phase.
Increasing Institutional Interest in Cryptocurrency
The imminent launch of Lynq may indicate a growing interest among institutions in digital assets, particularly stablecoins, which are increasingly utilized in settlement processes.
DefiLlama reports that the stablecoin market capitalization reached $251.4 billion on Tuesday, representing a 55.5% increase in a year.
Stablecoins provide advantages over conventional fiat currency, such as enhanced liquidity, quicker settlement times, and reduced transaction costs.
These advantages are further enhanced when conducting cross-border transactions or in countries where reserve fiat currencies, such as the US dollar, are in short supply.
90% of institutions are either currently utilizing stablecoins or have intentions to do so, according to a survey conducted by Fireblocks. In May, the Wall Street Journal reported that several major US institutions were in the early stages of discussions to issue a stablecoin jointly.