Digital asset settlement network Lynq is launching with Crypto.com as a partner.
Crypto.com’s exchange is now the first digital asset exchange to integrate with Lynq, according to a Thursday (May 8) news release. The partnership will help speed adoption for Lynq, alongside launch partners including B2C2, Galaxy and Wintermute.
“This partnership is a natural progression in our mission to deliver an efficient and scalable settlement solution that addresses the specific needs of institutional clients in the digital asset industry,” said Jerald David, president of Arca Labs and leader of the consortium that developed Lynq.
The integration will allow Crypto.com’s institutional clients to fund their trading accounts and offramp to the settlement platform with a single click. In addition, Crypto.com will get access to a network of digital asset market participants that allow real-time settlement and the ability to earn yield on assets on the platform, according to the release.
“Lynq aims to address the unique challenges of digital asset settlement, including market fragmentation, counterparty risk and evolving regulatory frameworks, while returning yield to institutional clients,” the release said.
Lynq announced April 22 the go-live of its platform in the second quarter of this year.
The launch is happening as cryptocurrency continues its push into mainstream finance. Regulators such as the Securities and Exchange Commission, Federal Deposit Insurance Corp. and Federal Reserve have begun to clarify their positions on crypto.
“There’s certainly a change in how the administration views the digital assets industry,” Dan Boyle, partner at Boies Schiller Flexner, said in an interview with PYMNTS last month. “This is not a confrontational posture.”
“The obvious growth in stablecoins and the fact that you have a lot of issuers ready to be fully compliant — it’s a hard argument for Congress to ignore,” Boyle added.
Stablecoin market capitalization hit an all-time high last month amid strong performance throughout cryptocurrency sectors.
“Regulatory maturation, the real-world quest for stablecoin utility, and the institutionalization of digital assets mark a turning point in which the Wild West days of crypto are being replaced by a convergence with mainstream finance,” PYMNTS reported Friday (May 2).