Post by GOAT FINANCE

Before you move size with any crypto partner: a counterparty due-diligence checklist. The difference between a smooth institutional trade and a catastrophic one often comes down to the questions you ask — or didn't ask — before the first transfer. Here's what your team should verify before onboarding any new crypto trading partner: 1. Are they quoting as principal or acting as an agent? Principal desks take the other side of your trade directly. Agents route your order — you inherit their counterparty, their timing, their slippage. 2. Where do your funds sit during a trade? If funds aren't held in a segregated account separate from the firm's own assets, you carry balance sheet risk you may not have priced. 3. What does settlement actually look like? Custodian-to-custodian? What's the timeline? Is it confirmed before funds move? 4. Who is the legal entity you're contracting with? A trading desk should be able to provide clear legal and corporate documentation. If this is unclear, that is itself a signal. 5. What is their KYC/AML process? A well-run desk vets its clients. That's not friction — it's a safeguard for everyone. Due diligence is not a formality. It's how you protect your institution before a trade becomes a problem. For information only. Not financial advice. #InstitutionalCrypto #OTC #Compliance #DueDiligence #DigitalAssets #Treasury