Post by GOAT FINANCE

Where do your funds actually sit during a trade? Why segregated, non-custodial settlement matters. There are broadly two models: Model A — Commingled / Custodial: Your funds are deposited to the trading desk's account. They hold them on their balance sheet while the trade is being arranged. You become an unsecured creditor. If something goes wrong with the desk — operationally, financially, legally — your funds are caught up in it. Model B — Segregated / Non-custodial: Your funds remain in your custody (or a qualified third-party custodian) until the moment of settlement. Movement is atomic — assets exchange simultaneously, or the trade doesn't settle. Your funds are never co-mingled with the desk's own assets. At institutional size, this isn't a technical preference. It's a risk management decision. Ask your trading partner: where exactly do my funds sit between execution and final settlement? The answer tells you a great deal about the risk you're actually carrying. For information only. Not financial advice. #InstitutionalCrypto #OTC #Settlement #Compliance #Treasury #DigitalAssets