Lynq, a settlement network for institutional digital asset markets, and The Better Money Company (TBMC), a stablecoin clearinghouse, have completed a live proof of concept that executed institutional settlement in a matter of minutes. The test converted a client's assets held on Lynq into RLUSD, with the transaction running through live production accounts and involving real institutional counterparties.
The exercise was designed to answer a narrow but consequential question: whether a digital dollar can move between institutions quickly without a credit facility standing in for speed. According to the companies, the answer was affirmative, with settlement completing in minutes rather than the hours or days typical of traditional banking rails.
How the settlement worked
The proof of concept followed a pre-funded workflow. TBMC converted assets already held on Lynq into RLUSD, the stablecoin issued by Ripple, and the settlement cleared within minutes. Because the process bypassed conventional banking windows, it demonstrated that institutions can settle outside standard operating hours.
A notable feature of the test was the treatment of interest. Assets continued to accrue interest while held during settlement. To calculate that interest, Lynq uses Tassat's Yield in Transit functionality, which determines accrued interest based on how long an asset is held, keeping the interest intact throughout the settlement process.
Why the companies say it matters
Sam Broner, founder and CEO of The Better Money Company, framed the result as evidence that stablecoins become meaningful institutional infrastructure when firms use them inside real settlement workflows. He said the proof of concept shows how stablecoin fragmentation can be addressed through onchain collateral movement without relying on credit and traditional bank settlement to bridge the process. TBMC, he added, makes it simple for firms to begin and end stablecoin settlement in the stablecoin they need, at par.
Jerald David, CEO of Lynq, said institutions have never lacked capital but have lacked the ability to move it, in the right form, to the right place, at the moment it is needed. He described the proof of concept as small by design but said it answers a real question about whether a digital dollar can settle between institutions in minutes without a credit facility providing speed. Settlement, he said, is the layer by which everything else in the industry will eventually be judged.
Part of a broader stablecoin strategy
The test forms part of Lynq's wider stablecoin strategy, which aims to connect creation, redemption, settlement and capital movement into more integrated institutional workflows. Native stablecoin support on the Lynq platform is currently targeted for the end of 2026.
Lynq describes itself as a broker-dealer-operated settlement network for institutional digital asset markets. The network lets institutions move capital, settle with counterparties and manage funding and collateral across connected workflows while integrating with existing institutional infrastructure. It also enables the delivery of interest on assets used in settlement workflows, using Tassat's Yield in Transit functionality to support interest calculation during the holding period.
The Better Money Company positions itself as a stablecoin clearinghouse that enables swapping and redemption at par, powered by direct issuance and settlement capability. The firm says it is building infrastructure for the next era of money and plans to expand into products and tools that help partners use reliable stablecoins.
What to watch
The proof of concept was limited in scope, and the companies have not disclosed the size of the transaction or the identity of the counterparties. The key milestone to monitor is Lynq's stated target of native stablecoin support by the end of 2026, which would move the capability from a tested workflow into a platform feature. For institutional investors, the test adds to a growing set of examples in which stablecoins are being evaluated as settlement infrastructure rather than purely as trading instruments.
This article is for informational purposes only and does not constitute financial advice.
