Tassat Moves Lynq to Avalanche for Real-Time Bank-Grade Settlements
Tassat, a financial technology firm specializing in blockchain infrastructure for regulated institutions, has migrated its real-time settlement network, Lynq, to a dedicated Layer 1 blockchain on Avalanche. The upgrade brings bank-grade settlement capabilities on-chain, extending a system that has already processed over $2.5 trillion in transactions.
Previously, Lynq operated within private banking networks, facilitating real-time settlement and tokenized payments across U.S. financial institutions. By shifting to Avalanche’s Layer 1, Tassat aims to scale its infrastructure for institutional markets, offering faster transaction finality, enhanced interoperability, and seamless integration with existing workflows.
Why Avalanche?
Running Lynq on Avalanche gives Tassat direct control over network validators, configuration, and data privacy—a key requirement for regulated financial institutions. Transactions now finalize in seconds with deterministic outcomes, eliminating reliance on external settlement layers. Avalanche’s architecture also allows interoperability with public blockchain assets issued on its C-Chain while maintaining the privacy standards demanded by institutional clients.
The move enhances Lynq’s ability to support complex workflows, such as collateral transfers and tokenized payments, within a single unified environment. The network already connects over 30 key players in institutional finance, including Crypto.com, FalconX, Galaxy, and Wintermute, and supports live trading, treasury management, and yield-generating assets.
Institutional Solutions at Scale
One of Lynq’s standout features is its Yield-in-Transit fund, which has reached $90 million in assets and delivered $235,000 in interest to participants. This fund accrues yield every two seconds and can be transferred peer-to-peer as a settlement asset, ensuring that capital remains productive even while in transit. Additionally, Lynq facilitates the issuance of registered treasury funds on Avalanche, aligning operational efficiencies with regulatory compliance.
The migration was completed with full state continuity, ensuring existing integrations and positions remained intact. Tassat cites improved performance during periods of high activity and faster processing as key outcomes of the Avalanche transition.
A Broader Shift in Financial Infrastructure
Tassat’s decision to migrate Lynq to Avalanche reflects a broader trend in institutional finance. Legacy systems, often siloed and fragmented, are being replaced by blockchain solutions that enable real-time settlements, efficient capital usage, and seamless cross-institutional workflows. Avalanche’s architecture, which combines speed, scalability, and regulatory compliance, is emerging as a preferred choice for financial institutions seeking to modernize infrastructure without sacrificing control or interoperability.
Since its inception, Tassat has positioned itself as a leader in institutional blockchain solutions. Its flagship platform, TassatPay, enables 24/7/365 real-time payments backed by FDIC-insured deposits. The company has also played a pivotal role in powering the now-defunct Signature Bank’s Signet network, which processed over $2 trillion in transactions during its operation. By integrating Lynq with Avalanche, Tassat is further solidifying its role as a key player at the intersection of traditional finance and digital asset markets.
With this upgrade now live, Tassat is well-positioned to attract more institutional participants seeking efficient, compliant, and scalable blockchain settlement solutions. As the financial sector continues to embrace tokenized assets and real-time payments, Tassat’s infrastructure could become a cornerstone of next-generation banking systems.