How Does an Exchange Manage the On-Chain Transfer Process during Settlement? ⎊ Path

How Does an Exchange Manage the On-Chain Transfer Process during Settlement?

An exchange typically uses its own secure, institutional-grade hot and cold wallets to manage the transfer. Upon expiration, the exchange debits the seller's internal account and credits the buyer's internal account.

The actual on-chain transfer of the cryptocurrency to the buyer's external wallet is usually initiated by the buyer as a withdrawal, which the exchange then executes from its pool of funds, adhering to its security protocols.

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Glossar

On-Chain Transfer Process

Process ⎊ The on-chain transfer process describes the sequence of cryptographic and network operations required to move a blockchain asset from one wallet address to another, resulting in a permanent, immutable record on the distributed ledger.