Stablecoin Payments Glossary
Counterparty Risk
Counterparty risk is the risk that an intermediary or transaction partner fails to perform its obligations.
Explanation
In payment flows, this may involve a processor, exchange, custodian, or merchant failing to complete conversion, payout, or settlement. Counterparty exposure increases where payment flows depend on centralized intermediaries.
Why it matters
Counterparty risk shapes the reliability and trust profile of stablecoin payment arrangements.
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