Lynq enhances functionality with Collateral Lock
23 March 2026 US
Image: Suriyo/stock.adobe.com
Lynq has launched enhanced features for collateral and margin management, giving clients additional ways to deploy collateral on platform.
Through the new Collateral Lock, clients can now send peer-to-peer transactions, as well as lock and allocate assets in dedicated wallets on Lynq to support more efficient capital deployment across trading and collateral workflows.
According to the firm, evolving from how clients use escrow agents and third parties to hold and safeguard capital, Lynq’s Collateral Lock functionality allows clients to do so on platform.
The new capability allows Lynq participants to designate assets as collateral for counterparties and exchanges while those assets remain locked to prevent concurrent use.
This enables institutional clients to meet collateral and margin requirements within the Lynq environment, maximising capital on platform while reducing the need to move assets across multiple venues or accounts.
In addition, participants will be able to: deploy prefunded collateral to a dedicated wallet for safekeeping until the collateral is ready to be deployed; post collateral into Collateral Lock and release it when an off platform action is completed; receive interest on assets held on platform while those assets are being used as collateral; and release collateral designations and redeploy assets across other trading or settlement activities on the network.
The firm underscores that the functionality is designed to improve capital efficiency, simplify collateral management across venues, and reduce operational friction in institutional digital asset markets.
Jerald David, CEO of Lynq, states: “Capital efficiency and collateral mobility are becoming defining features of next-generation financial infrastructure.
“By enabling Collateral Lock on Lynq, we are providing clients with the ability to safely store their collateral, continue earning interest, and then authorise the release and transfer of their collateral upon completion of another leg of the transaction.”
Through the new Collateral Lock, clients can now send peer-to-peer transactions, as well as lock and allocate assets in dedicated wallets on Lynq to support more efficient capital deployment across trading and collateral workflows.
According to the firm, evolving from how clients use escrow agents and third parties to hold and safeguard capital, Lynq’s Collateral Lock functionality allows clients to do so on platform.
The new capability allows Lynq participants to designate assets as collateral for counterparties and exchanges while those assets remain locked to prevent concurrent use.
This enables institutional clients to meet collateral and margin requirements within the Lynq environment, maximising capital on platform while reducing the need to move assets across multiple venues or accounts.
In addition, participants will be able to: deploy prefunded collateral to a dedicated wallet for safekeeping until the collateral is ready to be deployed; post collateral into Collateral Lock and release it when an off platform action is completed; receive interest on assets held on platform while those assets are being used as collateral; and release collateral designations and redeploy assets across other trading or settlement activities on the network.
The firm underscores that the functionality is designed to improve capital efficiency, simplify collateral management across venues, and reduce operational friction in institutional digital asset markets.
Jerald David, CEO of Lynq, states: “Capital efficiency and collateral mobility are becoming defining features of next-generation financial infrastructure.
“By enabling Collateral Lock on Lynq, we are providing clients with the ability to safely store their collateral, continue earning interest, and then authorise the release and transfer of their collateral upon completion of another leg of the transaction.”
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