Goldman Sachs expands Treasury fund access to institutional crypto firms

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Goldman expands Treasury fund access

Highlights

Goldman Sachs now offers its FTIXX Treasury fund to institutional crypto firms via Lynq, with trades routed through SEC-registered broker-dealer tZERO Securities.
Lynq, a private Avalanche Layer 1 blockchain network with over $89 million in assets and 30+ institutions onboarded, integrated FTIXX as its first external fund and second available asset.
The move enables institutional clients—including B2C2, Wintermute, Galaxy, FalconX, Crypto.com, and Fireblocks—to earn yield on idle cash between trades without using a tokenized fund structure.

Treasury fund access through Lynq

As first reported by CoinDesk, Goldman Sachs is offering its FTIXX Treasury fund through Lynq, a settlement network used by digital-asset companies, with trades handled by SEC-registered broker-dealer tZERO Securities. The move opens one of the bank's largest Treasury funds to institutional crypto firms through an additional distribution channel rather than through a newly created blockchain fund.

FTIXX is the first outside fund made available on Lynq, which previously offered just one investment product on its network. The fund itself remains a conventional product, while Lynq provides crypto-focused institutions with access through the workflow they already use to move money between counterparties.

That setup differs from other Wall Street efforts in digital assets. BlackRock has built BUIDL as a tokenized fund, while Franklin Templeton offers tokenized shares of its money market fund through BENJI, but Goldman Sachs is keeping FTIXX in its existing form.

Cash management implications for crypto firms

For firms using Lynq, the fund offers a place to park cash between trades instead of leaving balances idle. That gives institutional clients an option to earn yield on funds that may need to be withdrawn again quickly for trading activity.

Lynq's clients have been asking for that type of product, according to David, whose comments describe demand from firms that routinely move large sums between transactions. The network works with companies including B2C2, Wintermute, Galaxy, FalconX, Crypto.com and Fireblocks.

Bringing FTIXX onto the network required Lynq to modify its technology, restrict access to U.S. clients and integrate with Mosaic, David said. Clients also need a relationship with tZERO Securities and must complete onboarding and eligibility checks.

Lynq runs on a private, permissioned Avalanche Layer 1 blockchain and has more than 30 institutional digital-asset firms onboarded, with more than $89 million in assets, according to the company. David said the platform is now multi-asset capable and that FTIXX becomes the second asset available to institutional clients.

Our earlier report on a DTCC, Citi and Swift white paper highlighted interoperability as a key requirement as tokenization moves from pilots to implementation. We noted that without connected infrastructure to move digital assets, cash and collateral across networks, markets risk fragmentation, higher operational complexity and weaker liquidity, alongside the need for clear regulation and governance.

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