Goldman Sachs brings $100 billion Treasury fund to crypto settlement network Lynq

Goldman Sachs is bringing its $100 billion FTIXX Treasury fund to the crypto settlement network Lynq, marking the network's first external fund offering. Unlike competitors BlackRock and Franklin Templeton, which offer tokenized funds, Goldman Sachs is distributing FTIXX as a traditional, non-tokenized money-market product. This allows institutional clients like Wintermute and Galaxy to earn yield on idle cash between trades via Avalanche blockchain rails, with transactions processed by tZERO Securities.

Goldman Sachs' FTIXX distribution

• ▪Transactions for FTIXX on Lynq are processed through tZERO Securities, an SEC-registered broker-dealer, where clients must maintain a relationship, pass onboarding and eligibility checks, and be eligible U.S. clients
• ▪Goldman Sachs is distributing its approximately $100 billion Treasury fund, FTIXX, to institutional digital-asset firms through the Lynq settlement network
• ▪The FTIXX Treasury fund is the first outside investment product offered on the Lynq network, which previously hosted only a single investment product

Non-tokenized structure of FTIXX

• ▪Goldman Sachs is distributing its FTIXX Treasury fund as a traditional, non-tokenized money-market fund rather than creating a new blockchain-based tokenized product
• ▪By avoiding tokenization, Goldman Sachs keeps FTIXX within its existing legal and regulatory structure, though FTIXX shares cannot move across DeFi protocols or serve as collateral

Institutional demand for Lynq

• ▪Institutional trading firms requested a Treasury asset on the crypto settlement network Lynq to earn yield on idle cash between trades without having to wire money out to traditional brokerage accounts
• ▪Lynq has onboarded more than 30 institutional digital-asset clients, including B2C2, Wintermute, Galaxy, FalconX, Crypto.com, and Fireblocks, holding over $89 million in assets on Lynq

Competitors' tokenized Treasury funds

• ▪Franklin Templeton offers tokenized shares of its money market fund on-chain through its BENJI platform
• ▪BlackRock offers a tokenized Treasury fund called BUIDL on the Ethereum blockchain

Debatable claims

• ▪Goldman Sachs's non-tokenized blockchain distribution is superior to tokenizing Treasury funds
• ▪Permissioned blockchains are more suitable for institutional finance than public networks