Avalanche tokenized Treasuries gain yield-bearing collateral use

Lynq and ZeroBeta have connected institutional borrowing and trading margin to tokenized U.S. Treasuries on Avalanche, allowing eligible pledged holdings to keep earning interest. Summary Institutions can use eligible Treasury holdings for secured borrowing and digital asset trading margin. BlueShift monitors collateral requirements and instructs Lynq to pledge, top up or release assets. Lynq reports more than $89 million in platform assets and over 40 institutional firms onboarded. The announcement does not identify initial integration users or disclose the value of pledged collateral. Lynq’s announcement, published Oct. 27, describes an integration between its settlement network and ZeroBeta’s BlueShift risk platform, built around a newly released feature that locks assets as collateral. Lynq collateral locks preserve interest during borrowing Through the new collateral lock function, clients can place eligible holdings in escrow while the underlying asset continues accruing interest, the companies said. Collateral stays on Lynq’s Avalanche settlement network from the initial pledge until its release. For secured borrowing, BlueShift instructs the network to pledge a tokenized Tr...