Key highlights:
- Goldman Sachs moved its $100 billion FTIXX Treasury fund to Lynq, an institutional settlement platform
- The announcement sent AVAX surging, with the token climbing by over 11% to trade at $11.72
- The move strengthens Avalanche’s institutional adoption narrative, although FTIXX runs on Lynq’s private Avalanche infrastructure rather than directly using the public AVAX token
Goldman Sachs has brought its $100 billion FTIXX Treasury fund to Lynq, an institutional settlement network built on Avalanche. The move gives more than 30 institutional digital-asset firms using Lynq access to the traditional Treasury fund a way to earn yield on cash between trades.
Goldman takes a different route into crypto
Per the announcement, the $100 billion FTIXX fund is not being tokenized. Instead, Lynq is providing a new distribution channel for the existing Goldman Sachs fund, with SEC-registered broker-dealer tZERO Securities handling trade execution.
The fund is the first external investment product added to Lynq, which previously offered one investment product. The network counts firms including B2C2, Wintermute, Galaxy, FalconX, Crypto.com and Fireblocks among its institutional users.
Lynq CEO Jerald David described the development as part of the growing convergence between traditional finance and digital assets. The network operates on an Avalanche Layer 1 designed specifically for institutional participants.
“We needed to demonstrate that there was client demand,” said David. “Our clients were looking for a treasury asset on the platform that may have had a different yield profile than the other instrument that’s on there right now.”
Goldman’s decision also puts Avalanche into the infrastructure stack being used to connect traditional financial products with crypto markets.
Unlike tokenized Treasury products such as BlackRock’s BUIDL, FTIXX remains a conventional fund. Lynq instead allows institutional crypto firms to access it within their existing settlement workflow.
AVAX surges 10% amid the Goldman Sachs announcement
The AVAX price spiked by double digits in the wake of the Goldman Sachs announcement. AVAX climbed from an intraday low around $10.16 to $11.74, with the token trading around $11.72, representing a gain of more than 11% at the time of the latest market reading.
The timing has made Goldman Sachs’ $100 billion fund one of the clearest catalysts behind the latest AVAX rally. However, the Goldman fund itself operates on Lynq’s private Avalanche infrastructure, rather than directly creating demand for the publicly traded AVAX token.
Meanwhile, AVAX has had a meteoric run over the last month. The 30-day chart indicates a 60% price spurt for the token, marked by impressive fundamentals and technicals.
A month ago, Charles Schwab added Avalanche to its crypto platform, joining an exclusive list of digital assets.
Source:: Goldman Sachs Brings $100B Fund to Avalanche-Based Lynq as AVAX Jumps