Avalanche Token Hits 6-Month High After Goldman Sachs Brings $100B Treasury Fund To AVAX-Based Network

Goldman’s FTIXX fund itself was not tokenized and remains an existing institutional fund.

• AVAX gained about 12% in 24 hours to a six-month high of $11.92.
• Avalanche-based Lynq now offers Goldman Sachs’ roughly $100 billion Treasury fund.
• Lynq settles institutions on a private, permissioned blockchain that’s built on top of Avalanche.

Avalanche (AVAX) jumped to a six-month high on Tuesday after Goldman Sachs (GS) made its roughly $100 billion Treasury fund available via an institutional network based on Avalanche.

AVAX’s price was up about 12% in the last 24 hours, paring gains after hitting a six-month high of $11.92. The token’s rally followed news on Monday that Goldman’s Financial Square Treasury Instruments Fund (FTIXX) is now available through Lynq, a settlement network for institutional crypto businesses.

It operates on its own private, permissioned blockchain built atop Avalanche. SEC-registered broker-dealer tZERO Securities processes the trades, tZERO announced on Monday.

On Stocktwits, AVAX was one of the top trending tickers. Retail sentiment around AVAX remained in the ‘neutral’ territory over the past day. Chatter around it improved to ‘normal’ from ‘low’ levels over the past day.

A New Channel, Not A Token

The fund itself wasn’t tokenized. Lynq CEO Jerald David said the firm’s clients were buying the usual institutional shares of the existing fund. This differs from on-chain Treasury products like BlackRock’s BUIDL.

FTIXX is the first external fund on Lynq and the second investment product in the network overall. It gives trading firms a venue to earn interest on idle capital between trades, Avalanche said. More than 30 institutional enterprises, including B2C2, Wintermute, Galaxy (GLXY), FalconX and Fireblocks, use Lynq.

Why Lynq Went Private

David, in an interview with Coindesk on Monday, said the private setup was a deliberate choice. He said many institutions are still wary of holding their own assets and using open networks.

“We know that there are users that are out there that are not comfortable yet with self-custody. They're not comfortable with public blockchains," David said.

He added that Lynq can now handle a fund of Goldman's scale. "The technology that we've created now is able to sustain a fund of that size, a fund of that magnitude, where you've got over $100 billion in AUM in it," he said.

Lynq has been working with Avalanche for close to three years, David said.

AVAX has been down over 9% so far this year and has lost over 63% in the last 12 months. 

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