Goldman Sachs is giving institutional crypto firms a new way to access one of its largest investment products, not by tokenizing it, but by plugging it into a settlement network they already
Goldman Sachs is giving institutional crypto firms a new way to access one of its largest investment products, not by tokenizing it, but by plugging it into a settlement network they already use.
The Wall Street giant's Financial Square Treasury Instruments Fund, known by its ticker FTIXX, is now available through the Lynq Real-Time Settlement Network.
tZERO, an SEC-registered broker-dealer that specializes in blockchain-based financial infrastructure, will handle transactions for qualified U.S. participants on the platform.
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FTIXX is a money market mutual fund that invests exclusively in U.S. Treasury obligations, things like Treasury bills and notes backed by the full faith and credit of the U.S. government.
In simple terms, it's a low-risk place for institutions to park cash and earn a return. The fund manages roughly $100 billion in assets.
What makes this move notable is how the fund is being distributed. Rivals such as BlackRock and Franklin Templetonhave leaned on tokenized funds, whose shares are issued and recorded on a blockchain. Goldman Sachs is instead offering FTIXX on Lynq in its traditional format, not through the fund's tokenized share class.
Instead, Lynq acts as a new distribution rail, letting digital-asset firms access the fund through blockchain-based settlement rather than traditional financial plumbing.
Lynq is a real-time settlement network built on a private, permissioned Avalanche Layer 1 blockchain, a type of blockchain where only approved participants can join.
FTIXX is the first external fund introduced to the Lynq network, which previously had only a single investment product.
For crypto trading firms, it offers a way to earn yield on idle cash in near-real-time, without needing to wire money out to a traditional brokerage, wait for settlement, and wire it back when they need liquidity.
The arrangement also gives Goldman Sachs a way to reach institutional crypto firms through a settlement workflow those firms already use, without altering the fund into a blockchain-issued product.
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