ZeroBeta and Lynq partner to enable tokenized collateral use

ZeroBeta and Lynq have announced a partnership allowing institutional clients to use tokenized holdings as collateral for secured borrowing and margin trading without sacrificing interest earnings.

The integration utilizes Lynq’s collateral lock functionality, which enables clients to escrow funds as collateral while the underlying assets continue to accrue interest. ZeroBeta’s BlueShift platform serves as the risk management layer, setting terms and monitoring margin, while Lynq acts as the settlement rail to execute pledges and releases.

Built on the Avalanche blockchain, the system supports two primary workflows: secured borrowing and lending, and margin for digital-asset trading. This allows tokenized Treasury assets to back loans or trading positions while remaining active within the settlement network.