Lynq lets tokenized Treasuries earn while locked as collateral on Avalanche
Lynq, a settlement network on Avalanche operated by SEC-registered broker-dealer tZERO Securities, now lets institutional clients lock tokenized US Treasuries as collateral for loans and trading margin while the assets keep accruing interest. The update removes the classic trade-off where pledged collateral stops earning.
- Eligible holdings are placed in escrow under a new collateral lock function while the underlying asset continues accruing yield.
- Collateral remains on Lynq's Avalanche settlement network from pledge through the life of the loan or margin position.
- LFJ highlighted the development as an example of tokenization letting "one dollar do two jobs at once" on Avalanche.
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