ZeroBeta Integrates With Lynq to Let Institutions Use Tokenized Collateral While Earning Interest
Key Takeaways
- •ZeroBeta and Lynq have partnered to let institutions use Lynq holdings as collateral for secured borrowing and margin trading without forgoing interest income on the pledged assets.
- •The integration combines ZeroBeta's BlueShift platform, which sets risk terms and monitors margin, with Lynq's newly released collateral lock functionality that keeps escrowed assets accruing interest.
- •Pledged collateral remains within an established US broker-dealer framework because Lynq is operated by tZERO Securities, LLC, an SEC-registered broker-dealer and member of FINRA and SIPC.
- •The system supports two workflows—secured borrowing and lending, and margin for digital-asset trading—both governed by a single shared threshold engine for collateral movements.
- •Lynq's Avalanche-based settlement network has surpassed $89 million in assets and onboarded more than 40 institutional digital asset firms.

New York, NY, October 27, 2026 — ZeroBeta and Lynq today announced a partnership that lets institutions use Lynq holdings as collateral for secured borrowing and margin trading while the assets continue to earn interest. BlueShift, ZeroBeta's risk and collateral management platform, has recently certified connectivity to Lynq's settlement and collateral mobility platform. The partnership centers on Lynq's newly released collateral lock functionality, which allows clients to escrow funds as collateral while the underlying asset continues to accrue interest.
Institutions are holding a growing share of their assets in tokenized form, but using those holdings as collateral has usually meant a trade-off. Once an asset is pledged against a loan or a trading position, it generally stops working for its holder while it remains locked. For tokenized Treasury assets — the instrument named in both workflows below — the trade-off is especially pointed, since the interest they accrue is a defining feature of the asset itself.
Under the integration, BlueShift acts as the risk layer, setting terms and monitoring margin across the collateral lifecycle, while Lynq acts as the neutral rail, holding the collateral and executing pledges and releases on BlueShift's instruction. Because Lynq is operated by tZERO Securities, LLC, an SEC-registered broker-dealer and member of FINRA and SIPC, pledged collateral stays within an established US broker-dealer framework for the life of the pledge. Built on Avalanche, the high-performance blockchain platform powering Lynq's institutional settlement network, Lynq keeps collateral on the same rail from pledge through release, allowing the underlying asset to continue accruing interest throughout the lifecycle.
The integration supports two workflows built on the same threshold logic:
- Secured borrowing and lending. BlueShift instructs Lynq to pledge the tokenized Treasury asset in favor of the lender, and to top up or release collateral as its value moves through the agreed threshold.
- Margin for digital-asset trading. BlueShift calculates margin for open positions and new orders with the tokenized Treasury asset accepted as margin, and instructs Lynq to pledge or release against the same logic.
Running both use cases on one threshold engine means collateral movements follow a single set of risk parameters, whether the position being financed is a loan or a trade.
Jerald David, CEO of Lynq, said: “Institutions shouldn't have to choose between using an asset as collateral and continuing to earn interest on it. With ZeroBeta, eligible assets can remain on Lynq's settlement network while backing a loan or trading position. That gives institutions a more efficient way to put their capital to work and advances our vision of connecting settlement, lending and trading on a shared network.”
Varuna Wijesundera, CEO of ZeroBeta, said: “Tokenized assets create real value only when institutions can use them in their daily operations, and collateral is one of the most compelling use cases. Our partnership with Lynq brings institutional-grade risk and collateral management directly onto a settlement network where assets earn interest. Together, we're turning tokenized assets into collateral that market participants can rely on in lending and trading.”
As institutions increasingly adopt tokenized assets, Lynq is working to make those holdings useful across a broader range of financial activities. The ZeroBeta integration represents another step in that development, allowing institutions to earn interest, access financing and support trading through assets already held on Lynq. Both halves of the pairing are recent — the collateral lock functionality is newly released and BlueShift's certification has recently been completed — so how institutions already on the network put the combined borrowing and margin workflows to use will be an early indicator of the partnership's practical adoption.
Lynq is a real-time, interest-bearing settlement and collateral mobility network for institutional digital assets. Operated by tZERO Securities, LLC, an SEC-registered broker-dealer and member of FINRA and SIPC, and developed by Arca Labs, Tassat Group and tZERO Group, the network's patented Yield-in-Transit™ technology calculates and distributes interest in real time. Assets on the platform have surpassed $89 million, with more than 40 institutional digital asset firms onboarded. Lynq is built on Avalanche, which provides the blockchain infrastructure underlying its institutional settlement network.
ZeroBeta specializes in real-time risk, collateral and liquidity management across traditional and digital assets, with agentic AI embedded across its platform. Founded by technologists with more than two decades of experience in business and technology transformation, the company is headquartered in Canada, with delivery centers across North America, the U.K. and Sri Lanka.
Its cloud-native BlueShift platform supports real-time computation across multiple asset classes, serving buy-side and sell-side firms as well as market infrastructure providers, including clearing houses and depositories. The platform provides a unified environment for managing risk, margin, collateral and settlement workflows across both traditional and tokenized assets, enabling institutions to dramatically reduce time-to-market compared with legacy technology.