What Is the Role of a “Clearing House” in Physically Settling Crypto Futures?

The clearing house acts as the central counterparty (CCP) to every trade, guaranteeing the performance of the contract. In physical settlement, the clearing house manages the logistical process of delivery.

It ensures the seller has the asset to deliver and the buyer has the funds to pay, facilitating the secure and timely transfer of the asset and the corresponding cash payment upon expiration.