The global demand for U.S. Treasuries has long made the U.S. a cornerstone of institutional finance, historically offering capital preservation, liquidity, and predictable returns. For digital asset markets, where innovation often outpaces infrastructure, this demand is especially relevant—Lynq is looking to fill this critical gap.
A U.S.-Based and U.S.-Managed Solution
Lynq is proud to be U.S.-based and operated by U.S. companies, delivering a settlement solution built to align with U.S. policy priorities and financial market standards. Recent momentum in Washington D.C. has underscored the importance of domestically developed and managed crypto infrastructure—recognizing that critical financial systems are most resilient when built within trusted jurisdictions.
Investing in U.S. Treasuries: A Foundation of Stability
At the core of Lynq’s design is the integration of U.S. Treasuries into our settlement ecosystem. This approach creates a settlement network which focuses on capital preservation while allowing market participants to engage in efficient, interest-bearing settlement. For institutions seeking stable collateral options and streamlined settlement processes, U.S. Treasuries remain unmatched in global demand.
- In 2024, foreign and domestic holdings of U.S. Treasuries reached $7.9 trillion, underscoring their role as the global safe-haven asset of choice.
- Average daily trading volume in the U.S. Treasury market exceeded $800 billion in Q2 2024, highlighting deep liquidity and importance as a collateralization asset.
- U.S. Treasuries continue to dominate global reserve allocations, accounting for nearly 60% of all official foreign exchange reserves as of late 2024.
Meeting Market Demand Where It’s Strongest
Global demand for U.S. Treasuries continues to rise, underscoring their importance as the backbone of modern financial markets. Yet, in digital asset markets, institutional settlement remains fragmented, with many firms still facing T+1 to T+2 settlement cycles—a pace at odds with the 24/7 nature of crypto trading. An estimated $6–8 billion in liquidity remains locked daily in inefficient post-trade processes for digital assets.
By building Lynq’s infrastructure with U.S.-based companies and U.S. financial instruments in mind, we aim to enable a future where digital asset settlement operates with the trust, speed, and confidence institutions expect—reclaiming an innovation too often pushed offshore by companies that depend on U.S. Treasuries yet avoid operating where those assets originate.
Footnotes
- U.S. Department of the Treasury, Treasury International Capital (TIC) Data, 2024.
- Securities Industry and Financial Markets Association (SIFMA) Q2 2024 U.S. Treasury Trading Volume Report.
- International Monetary Fund (IMF), Currency Composition of Official Foreign Exchange Reserves, 2024.
- Coalition Greenwich, “Crypto Market Structure 2024: Institutional Settlement Gaps.”
- Galaxy Digital Research, “Crypto Post-Trade Inefficiencies: Cost of Fragmented Settlement,” 2024.