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Crypto DeFi

Explainer: Crypto Clearing Is Not the Same as Settlement

Crypto market participants are drawing a distinction between clearing and settlement, noting that netting offsets obligations and collateral backs performance, but neither process completes payment and delivery. The clarification comes as the industry examines post-trade mechanics. Completing a trade requires actual payment and delivery, which remain separate from netting and collateralization.

Original source

AI take

The distinction matters because much of the industry's risk narrative rests on netting and collateral being treated as if they finished the job. They reduce exposure between counterparties but leave the final payment-and-delivery step exposed, which is where operational and counterparty risk actually concentrates. Worth watching is whether this framing shifts how post-trade infrastructure and collateral arrangements are assessed, rather than being folded back into shorthand about trades being settled once netted.

Generated by AI for reference only.

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