Trading, custody, clearing, settlement, and collateral management connect when each step reads from and writes to the same record of who owns what. In traditional markets those steps run on separate systems that reconcile with each other after the fact. With tokenized assets, a shared ledger can carry the asset, the payment, and the instructions, so a completed trade can update ownership, custody positions, and collateral balances from one source.
Last updated: October 12, 2026.
What does each step do?
Each function answers a different question about a trade. Connecting them means passing a reliable result from one step to the next.
| Step | Question it answers | Tokenized form |
|---|---|---|
| Trading | Who agreed to buy and sell, and at what price? | An order matched by a venue, onchain or offchain |
| Clearing | What does each party owe once trades are confirmed and, where used, netted? | Obligations calculated before or at settlement |
| Settlement | Have the asset and the payment changed hands? | Token and cash leg transferred, atomically when both legs are onchain |
| Custody | Who controls the keys or accounts holding assets? | Wallets, signing policies, and segregation of holdings |
| Collateral management | Is enough value pledged to cover exposures? | Tokens locked, moved, or revalued against obligations |
Why are these steps separate today?
Each step grew up with its own operator, ledger, and timetable. A trade is recorded by the venue, cleared by a clearing house, settled through a settlement system, and held at a custodian. Every hand-off needs messages and reconciliation, and each one adds time and room for mismatch.
What changes when the asset is a token?
The asset itself sits on a ledger that every step can read. Settlement can become atomic delivery versus payment, where the token and the payment move in one transaction or not at all. The cross-chain settlement overview explains how that works when the two legs sit on different chains.
Collateral can also move faster, because pledging or releasing a token is a transaction rather than an instruction passed between institutions. The cross-chain collateral management guide covers margin, liquidation, and the risks of moving collateral between networks.
Not every function disappears. Legal agreements, risk models, and regulatory reporting still apply. What changes is that the steps can rely on one record instead of several copies.
What if the steps run on different chains?
A venue, a custodian, and a collateral system may each prefer a different network. In that case the workflow needs a way to pass verified messages and assets between chains, so that a settlement on one network can release collateral or update a position on another. Without that link, the shared record splits again into separate ledgers.
FAQ
Does tokenization remove the need for clearing?
Not always. Atomic settlement can remove the risk that one leg settles without the other, but it settles each trade gross and needs both legs funded in advance. Netting, margining, and default management can still be needed, especially in markets with many trades between the same parties.
Is custody still needed if assets are on a blockchain?
Yes. Someone must control the keys or accounts, apply approval policies, and keep client assets separate. The form changes, but the duty remains.
What is delivery versus payment?
Delivery versus payment means the asset is delivered only if the payment is made, and the payment is made only if the asset is delivered. Neither party is left holding one side of the trade.
Connect the workflow across chains
To map how a tokenized asset workflow can span venues and networks, request a custom briefing.