With Lynq, clients gain access to a platform for cash management, settlement, and yield generation in the digital asset space. Our cutting-edge technology and seamless account and securities transaction management system redefine how institutional transactions are handled in this rapidly evolving ecosystem.
Here’s how it all works:
A Regulatory Focused Asset Management and Settlement Solution
Lynq, operated by tZERO Securities, LLC (“Broker Dealer”), seamlessly integrates digital asset security custodial services operated by tZERO Digital Asset Securities (“SPBD”), with Tassat’s settlement technology and Arca’s Institutional U.S. Treasury Fund managed by Arca (“TFND” or the “Fund”). By filling the gap left by the exit of traditional bank-operated settlement networks like Signature’s Signet and Silvergate’s SEN, Lynq offers an innovative solution to modern financial needs in a framework which allows for an investment in a Fund that holds its assets in a bankruptcy-remote structure.
Client Onboarding
Onboarding can take days, rather than months. Account opening begins with the Broker Dealer and the SPBD, and once clients clear all Broker Dealer, SPBD, and Fund onboarding checks, they gain immediate access to Lynq to start transacting. Our core service providers (Arca, Tassat, and tZERO’s broker-dealers) bring years of servicing across fund advisory, brokerage services, and SOC II technology facilitation, reflecting our commitment to clear, responsive client communication.
Upon account activation, clients receive a “New User Welcome” package including credentials to fund their Broker Dealer account and begin transactions on the Lynq platform. For those seeking advanced integration, API access is available, with full documentation, establishment of Tassat’s API developer portal, and expert technical support from Tassat’s team to guide clients through the setup.
Funding and Withdrawal of USD
For platform launch in Q2, Lynq supports Broker Dealer account funding and withdrawals via USD transfers. Clients can fund their Broker Dealer accounts by transferring USD from their bank account to the Broker Dealer account at U.S. Bank via wire. Once the USD is received in good order, it is credited to the client’s Broker Dealer account and made available on Lynq.
Withdrawals are also facilitated through Lynq, where clients can request a transfer of USD from their Broker Dealer account to their external bank account. The Broker Dealer reviews and vets withdrawal instructions and initiates a wire transfer in accordance with standard bank operating hours.
Clients can manage cash in different sub-accounts on the Lynq platform or engage in securities transactions such as buying, selling, subscribing, or redeeming Fund shares. All USD deposits are held by tZERO Securities in accordance with the SEC’s customer protection rule. Please note that USD deposits do not earn interest.
Transacting Using TFND
Lynq clients can directly subscribe to or redeem from TFND hourly. Subscription and redemption requests are processed during business hours, following the NYSE holiday calendar, with client requests finalized between 9 AM and 6 PM EST. Once processed, clients gain access to shares of the Fund (in the case of subscriptions) or USD (in the case of redemptions).
Transacting with Counterparties
Lynq enables clients to interact in an easy account-to-account fashion by permitting users to transfer shares of the Fund amongst each other, subject to Broker Dealer transaction monitoring procedures. The receiving counterparty gains access to the transferred shares of the Fund, which, thanks to Lynq’s proprietary yield-in-transit technology, begins earning interest immediately upon crediting to their SPBD account.
Tassat’s patent-pending interest distribution algorithm, designed for Lynq, ensures fair and precise intraday interest calculations for each client based on their Fund holdings and time in the system. This allows clients to enjoy uninterrupted yield accrual, without concerns about business day cutoff times.
Disclosure
©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 adviser or investment manager, and is not providing brokerage, investment banking or underwriting services, recommendations or investment advice to any person.