OFF-EXCHANGE SETTLEMENT

Trade on the venue. Settle at your custodian.

Off-exchange settlement replaces prefunded exchange balances with real-time allocations against custody. Your desk trades on any connected venue across spot, derivatives, and DeFi, and net obligations settle back into custody on your schedule.

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BridgePort Trading Firm Dashboard: asset utilization and allocation across custodians

The problem it solves

Institutional crypto inherited a retail workflow. To trade on an exchange, you first move assets onto it. Every venue needs its own float, so capital sits idle in a dozen places, and all of it is exposed to the venue itself. The collapses of 2022 made the cost of that arrangement explicit.

Off-exchange settlement separates execution from custody. The venue sees credit and executes your orders. Your custodian holds the assets until a netted settlement moves only what is owed. Traditional markets have worked this way for decades; OES brings the same structure to crypto.

How off-exchange settlement works

  1. 01

    Pledge Assets

    Pledge assets held at your custodian. They stay in custody and back your exchange credit.

    Try the pledge console
  2. 02

    Allocate

    BridgePort allocates collateral from your custodian in real time to cover the position.

    Try the credit console
  3. 03

    Settle

    Net obligations settle off-exchange, back into custody. Your assets never sit on the exchange.

    Try the settlement demo

One platform, every asset class

Spot

Execute spot without prefunding

Allocate assets on demand and settle at your custodian, so capital stays in your control until settlement.

  • On-demand allocation
  • Deferred settlement
  • No idle exchange balances
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Derivatives & Margin

Keep perps and options open without manual ops

BridgePort monitors margin in real time, moves collateral automatically, and alerts before shortfalls.

  • Real-time margin monitoring
  • Automated collateral moves
  • Shortfall alerts

DeFi

Institutional controls on-chain

Automate execution and settlement on on-chain venues with the same custody and compliance guarantees as your CeFi flow.

  • On-chain execution
  • Custody-backed settlement
  • TradFi-grade controls

Built for every seat

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Trading firms

See allocations, margin, and settlements across every venue and custodian.

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Custodians

Track settlements requiring action with a real-time monitor.

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Exchanges

Receive allocations and settle without holding customer assets.

Why BridgePort

The Secure Bridge for Execution and Settlement

BridgePort is middleware for institutional crypto. We build the pre-trade tools and post-trade settlement infrastructure that let firms trade on any exchange they choose and settle at the custodian they trust.

This is Off-Exchange Settlement, the standard institutional crypto needs.

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What changes for your desk

The same venues and the same strategies, with custody risk and idle capital taken out of the loop.

  • Assets stay in custody

    Collateral remains at your custodian until settlement. The exchange never takes possession of your funds while you trade.

  • No prefunding

    Trade against allocated credit instead of balances parked on each venue. Capital moves when trades settle, not before.

  • Net settlement

    Obligations are netted and settled off-exchange, back into custody. Fewer transfers, lower cost, a full audit trail.

  • Counterparty risk contained

    If a venue fails, your assets are not on it. Exposure is limited to unsettled obligations, not your trading float.

THE LEGAL LAYER

Off-exchange settlement runs on DAMA

The Digital Asset Master Agreement is the contract the mechanics on this page settle under. One tri-party standard covering the trading firm, the custodian, and the exchange, in place of months of bilateral negotiation.

  • Trading firm
  • Custodian
  • Exchange
Read about DAMA

Common questions

What is off-exchange settlement?
Off-exchange settlement (OES) lets institutions trade on a crypto exchange while their assets stay at their own custodian. Trades execute on the venue against allocated credit, and the resulting obligations settle later, custodian to custodian, instead of from balances held on the exchange.
How is it different from prefunding?
Prefunding means moving assets onto each exchange before you can trade there, which parks capital on every venue and exposes it to venue failure. With off-exchange settlement there is nothing to park, because collateral is allocated from custody in real time and only net obligations move at settlement.
Who holds the assets while I trade?
Your custodian. BridgePort is middleware. It coordinates allocations and settlement instructions between your custodian and the venues you trade on, and it never takes possession of customer assets or keys.
Is off-exchange settlement the same as OTC trading?
No. OTC trading is a way to execute a trade bilaterally, off an exchange order book. Off-exchange settlement is about where collateral sits and how obligations settle. It applies to exchange trading and OTC alike, so you execute wherever you choose and settle at your custodian.
Which exchanges and custodians does BridgePort connect?
BridgePort is a neutral network across exchanges, custodians, and OTC venues, with one integration on each side. Contact us to confirm coverage for your specific venues and custodian.

For the legal side of OES, see the Digital Asset Master Agreement. To build it into your own systems, see the Settlement API. For how it applies to your seat, see trading firms, custodians, or exchanges.

See off-exchange settlement on your flow

Talk to the team about connecting your venues and your custodian.

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