Definition ∞ A Clearing Agency serves as an intermediary between buyers and sellers in financial markets, managing the exchange of payments and securities. Its primary function is to reduce counterparty risk by guaranteeing the terms of a trade, even if one party defaults. This entity ensures the efficient and orderly settlement of transactions. It acts as a central counterparty, standing between participants to finalize obligations.
Context ∞ In traditional finance, clearing agencies are fundamental to market stability. Within the evolving digital asset space, their role is a subject of considerable debate, particularly concerning the settlement of tokenized securities and derivatives. Regulatory bodies are currently examining how existing clearing frameworks can be adapted, or new ones established, to address the unique characteristics of digital assets and their underlying distributed ledger systems.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
