Unlocking Liquidity and Efficiency: How HashLynx Transforms Private Credit Settlement

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A White Paper – July 2025

Executive Summary

Private credit has grown into a $2.5 trillion+ asset class globally, offering attractive yields and diversification beyond traditional public markets. Yet, despite its institutional scale, private credit remains hampered by manual processes which act as a limiter to continued growth and scale out of the asset class.  The demand is there but the technology to handle it is not.

HashLynx, a next-generation loan settlement system, aims to modernize this market. By delivering real-time settlement workflows, enhanced data transparency, and smart contract automation, HashLynx is poised to reshape how private credit trades are finalized over the next five years. The platform offers a transformative opportunity for market participants to improve operational effectiveness, unlock latent liquidity and execute in a cost effective manner while minimizing people costs 

The Challenges in Private Credit Operations

Unlike syndicated leveraged loans or public bonds, private credit instruments—ranging from bilateral term loans to club deals—often lack standardized documentation and infrastructure. Until recently any trading was more likely within a fund manager’s complex and not outside of the complex  Operational challenges include a substantial reliance on manual settlement processes and, like the BSL market, long settlement times.

Now with the attractiveness of the asset class, more and more liquidity is being dedicated to the asset class.  These investment flows are demanding liquidity, a natural outgrowth to the maturation of private credit. This liquidity demands a more sophisticated settlement system to meet these growing demands.  The greatest risk to the rapid growth in private credit is the inability to efficiently manage that growth while minimizing operational risk. In short, private credit’s operational ecosystem remains closer to the 1990s than the modern digital landscape. Improving it is critical to support market growth and to attract broader investor participation.

How HashLynx Addresses Operational Inefficiencies

HashLynx was built from the ground up for the realities of private credit. Its design revolves around several core capabilities:

1. Cost effective system to settle trades within a fund manager’s complex

HashLynx can easily and simply execute any fund to fund transfer.  The fund manager simply needs to provide desired beginning and end fund positions with existing and new funds and HashLynx automatically calculates and produces all the assignment agreements needed to manage the transfer.  Furthermore all of these transfers can be housed on one master trade ticket for ease of tracking and reduction of settlement costs.

2. A platform that is built for both Private Credit and the BSL Markets

HashLynx recognizes that most fund managers run multiple strategies in the loan market, across markets, private credit and BSL and across asset classes, corporate loans, real estate, infrastructure etc.  Our settlement platform is built to handle all of these markets.

We also recognize that even with the BSL market the bulk of many fund managers’ trading is done within the fund manager complex, just like private credit.  To address that need we have built cost effective “Network of One” settlement solutions to easily produce and settle these internal assignments by using our modular master trade ticket technology.   

3. HashLynx is built to minimize cost and simplify settlement to reduce FTE resources

Our mission is to speed settlement, while reducing costs including lowering FTE usage.  Simply put, more technology drives a system that is simpler to use and therefore requires fewer FTE interactions.

Ultimately HashLynx is committed to build the settlement infrastructure requirements that will grow the Private Credit market in the most cost effective and efficient manner for all market participants. These benefits are twofold:

Conclusion

Private credit markets have matured in size but lag behind in operational modernization. As institutional investors demand higher agility and regulators push for transparency, platforms like HashLynx are essential. By eliminating settlement friction and bringing data-driven transparency to private credit workflows, HashLynx stands ready to transform operational effectiveness—and turn private credit into a truly liquid institutional asset class.