Falconx, the Digital Asset Prime Brokerage, said it has run more than $1.5 trillion in trading volumes and has joined Crypto.com, Galaxy and Wintermute as launch partners for Lynq, a platform aimed at becoming the payment tier for digital assets and financial institutions. The launch of Lynq could highlight the growing institutional interest in digital assets as regulatory clarity improves.
Falconx, who tells Lynq CEO Jerald David, has access to over 400 tokens, told Cointelegraph that it “acts both as a participant and a liquidity provider for the Lynq network.”
Developed in collaboration with Arca Labs, Tassat Group and Tzero Group, Lynq aims to provide evolving regulatory frameworks and solutions to deal with counterparty risks, according to a announcement Tuesday. These issues may be important for agencies that are following strict regulations and are considering launching cryptographic products.
https://www.youtube.com/watch?v=fdpmjhtq5am
In cryptographic terms, a settlement is the final part of the process in which funds are transferred between parties, and transactions are recorded on the blockchain. Some examples include sending tokens from one party to another, releasing collateral stored in the contract, and token generation events where the token is automatically distributed to investors.
Anchorage Digital, an institution-compatible web3 company, has a settlement network of institutions called Atlas. Bvnk, a London-based crypto company, is involved in a variety of crypto payment processes.
Examples of blockchain-based payment networks include Kinexys by JP Morgan and the “Project Ion” platform by leading US equity clearinghouses.
Of the Lynq platform, David said: “Access to the Lynq network is available free of charge to participants, and transactions on the network are not subject to transaction fees. Lynq revenue is derived by drawing small interest from the portfolio.”
The platform will begin its final user acceptance test phase on Friday.
Related: Falconx acquires a majority stake in Monarq – Report
Institutional interest in cryptography
The imminent launch of Lynq could indicate a growing interagency interest in digital assets, particularly for Stablecoins, which are more widely used in the settlement process.
According to Defilama, Stablecoin’s market capitalization reached $251.4 billion as of Tuesday, up 55.5% over the year.
Stablecoins offer several advantages over traditional Fiat currencies, including reducing transaction costs, speed of settlement times and improving liquidity. These benefits amplify when dealing with cross-border transactions or countries that reserve Fiat currencies such as the US dollar.
According to a Fireblocks survey, 90% of agencies are using or planning to use Stablecoins. In May, the Wall Street Journal reported that several large US banks were in early consultations to issue joint stubcoins.
Magazine: Bitcoin’s danger sign as a retailer abandons it to institutions – Skye
