Goldman Sachs opens $100bn Treasury fund FTIXX to crypto firms via Lynq
Goldman Sachs is offering its roughly $100 billion Treasury fund FTIXX through Lynq, a settlement network for digital-asset firms, without tokenising the fund.
Key points
- Goldman Sachs' FTIXX Treasury fund, worth about $100 billion, will be distributed through the Lynq settlement network.
- Trades are handled by tZERO Securities, an SEC-registered broker-dealer, and FTIXX is Lynq's first outside fund.
- Unlike BlackRock's BUIDL and Franklin Templeton's BENJI, FTIXX is not tokenised; Lynq acts as a distribution channel.
- Lynq runs on a private, permissioned Avalanche Layer 1 and has over 30 institutional firms and more than $89 million in assets.
- Lynq clients include B2C2, Wintermute, Galaxy, FalconX, Crypto.com and Fireblocks, which wanted a treasury asset with a different yield profile.
Goldman Sachs is bringing its roughly $100 billion Treasury fund FTIXX to institutional crypto firms through Lynq, a settlement network used by digital-asset companies, CoinDesk reports. The bank is not creating a tokenised version of the fund, making the arrangement different from several other Wall Street blockchain products.
Under the deal, FTIXX becomes the first outside fund offered on Lynq, which previously carried just one investment product. Trades are handled by tZERO Securities, an SEC-registered broker-dealer. Lynq clients can place cash in FTIXX between trades and earn yield until they need the money elsewhere.
The approach contrasts with BlackRock's BUIDL, a tokenised fund, and Franklin Templeton's BENJI, which offers tokenised shares of a money market fund. Goldman's FTIXX stays a traditional fund, with Lynq serving as another distribution channel rather than a new blockchain product. According to CoinDesk, the bank does not have to build a new blockchain offering to reach crypto firms.
Goldman fund joins Lynq
Lynq chief executive Jerald David told CoinDesk TV that there is a convergence between traditional market participants and digital-asset market participants. He said clients had asked for a treasury asset on the platform with a different yield profile from the instrument already available. Lynq works with firms including B2C2, Wintermute, Galaxy, FalconX, Crypto.com and Fireblocks, whose businesses can require moving large sums between trades.
Adding FTIXX required Lynq to modify its technology, restrict access to US clients and integrate with Mosaic, David said. Customers also need a relationship with tZERO Securities and must pass onboarding and eligibility checks. Lynq runs on a private, permissioned Avalanche Layer 1 blockchain and has more than 30 institutional digital-asset firms onboarded, with over $89 million in assets, according to the company.
David said the Lynq platform is now multi-asset capable and described FTIXX as Goldman Sachs's flagship treasury fund and the second asset available to institutional clients. The move matters because it gives crypto trading firms a way to keep idle cash in a mainstream Treasury fund inside the workflow they already use, without waiting for a tokenised product.
No tokenised version
The article also notes that the rest of the page carried unrelated CoinDesk headlines, including items on restaking profits, Tether and Iran, Chainlink's CCIP update and bitcoin's fall to $83,000. Those items are not part of the Goldman Sachs report.