Foreign media: Lynq CEO Gerald David argued that even if the United States continued to improve encryption, it would be difficult to solve the problem of settlement after an institutional transaction. As digital assets, monetized securities and traditional markets accelerate connectivity, inconsistencies in the pace of finance, collateral and cut-offs are becoming more realistic obstacles to institutions.

The focus of the White House.

The White House meeting at Aug.19 is expected to involve at least six encrypted and forecast market companies. It was reported that Coinbase, Ripple, a16z, Chainlink, Paradigm and Kalshi were on the list of invitees. The Chairpersons of Trump, SEC, Paul Atkins and CFTC, Michael Selig, may also be present.

David said that regulation was of course important, but institutions were facing even lower operational problems. Upon completion of the transaction, the institution also has to complete the transfer of funds, the delivery of collateral and the settlement of positions, which often span multiple trading locations, counterparties and different types of funds.

The settlement rhythm is still inconsistent.

He pointed out that the encryption exchange was usually open 24 hours, with weekends and holidays. The banking and securities system, however, still relies on working days, deadlines and different liquidation processes. As a result, an institution can deal first, but not necessarily get the cash or collateral needed to complete the transaction immediately.

The article also mentions that on August 17, the United States Department of the Treasury introduced rule 3 of the GENIUS Act to specify the conditions for the issuance and sale of the payable stable currency in the United States. The proposal, which mainly dealt with “who can deliver and who can sell”, did not establish a unified clearing network linking banks, exchanges, brokers and custodians.

  • The Ministry of Finance intends to require the issuer to hold a licence from January 18, 2027.
  • By 18 July 2028, some service providers will be subject to distribution restrictions.
  • The public opinion period is 60 days.

The tokenized cash is trying to fill it.

To address this gap, the market is testing programmes such as monetized cash, monetized bank deposits and monetized money market funds. DTCC is also promoting the idea of monetized collateral, hoping that agencies can mobilize assets as needed rather than dispersing funds in advance.

Lynq itself operates an institutionally oriented private network in which participants can transfer money in real time. According to the company, the Platform ' s assets exceeded $89 million in February and worked with more than 30 institutional digital asset companies. It also introduced collateral lock-up in March, allowing users to designate assets as collateral without having to switch out of the network.