FalconX, a major digital assets brokerage, has announced its partnership with Lynq, a settlement platform for financial institutions and digital assets. This event confirms the increasing interest in cryptocurrencies from institutional investors.
FalconX and Lynq Partnership
FalconX, which claims to have over $1.5 trillion in trading volume, has joined other companies such as Crypto.com and Galaxy as a launch partner for Lynq. According to Lynq CEO Jerald David, FalconX will act as both a participant and liquidity provider on the Lynq network.
Objectives and Functions of Lynq
Lynq, developed in partnership with Arca Labs, Tassat Group, and tZERO Group, aims to address issues related to evolving regulatory frameworks and counterparty risk. David noted that access to the Lynq network will be free for participants, and transactions will not incur processing fees, making it attractive for institutions operating under strict regulations.
Growing Institutional Interest
The launch of Lynq may signal an increase in interest from institutional investors in cryptocurrencies, especially stablecoins. According to DefiLlama, the stablecoin market capitalization has reached $251.4 billion, marking a 55.5% increase compared to last year. Stablecoins provide advantages such as reduced transaction costs and faster settlement times, making them appealing for transactions, particularly in an international context.
Existing trends and the launch of Lynq emphasize the growing interest from financial institutions in cryptocurrencies and the need for effective settlement solutions in this sector.
