What Role Does Custody Play in Mitigating Risk for Large OTC Crypto Trades? ▴ Learn

What Role Does Custody Play in Mitigating Risk for Large OTC Crypto Trades?

Custody plays a critical role by ensuring the safety and availability of the assets involved in the trade. By using a qualified, independent third-party custodian, both the buyer and seller can mitigate counterparty risk.

The custodian holds the assets in escrow until the trade is confirmed and settled, ensuring the simultaneous exchange of assets (Delivery Versus Payment or DVP).

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