How Does Non-Custodial Settlement Reduce Counterparty Risk in an RFQ Environment?

Non-custodial settlement means the RFQ platform never holds the client's assets, removing the platform itself as a single point of failure or potential target for hacking. The assets remain with a regulated, qualified custodian or the client's own wallet until the trade is confirmed.

This separation of trading and custody significantly mitigates platform-level counterparty risk. It ensures assets are only moved upon successful trade completion.