Tassat and Lynq add real-time settlement and yield on Avalanche

Tassat and Lynq announced plans to deploy real-time settlement and on-chain yield-bearing assets on the Avalanche blockchain during a recorded podcast episode. The announcement named Andre Frank, chief operating officer of Tassat, and Jerald David, chief executive officer of Lynq, as the executives outlining the work.

The firms plan to combine near-instant settlement capabilities with tokenized cash and cash-like instruments that can earn returns while held or in transit on chain. They described using Avalanche for transaction processing, recordkeeping and asset management.

Frank and David said the work aims to shorten the time between trade execution and final settlement and to allow funds to accrue interest during that window. Frank described the concept as “yield in transit,” meaning assets can earn returns while they move between accounts or await finality.

Executives pointed to Avalanche features they view as useful for these goals, including higher transaction throughput and rapid finality. They said faster finality can reduce counterparty risk and free up liquidity by shortening settlement cycles.

The companies discussed how on-chain representations of institutional assets can enable automated controls and reporting. They said those features can help preserve custody rules, support know-your-customer checks and provide auditable records required by financial firms.

Regulatory compliance and operational controls were presented as design constraints. David explained that the products must align with existing legal and compliance frameworks rather than replace them, citing custody, identity verification and audit trails as key requirements.

Use cases cited include faster interbank payments, settlement of tokenized short-term instruments and corporate treasury operations. The executives said shorter settlement windows combined with embedded yield could reduce intraday financing needs and simplify back-office reconciliation for institutional participants.

Both companies have previously discussed rebuilding parts of financial infrastructure with blockchain technology. The executives presented technical and operational details during the episode for listeners seeking a deeper explanation.