Stablecoin Payments Glossary
Internal Ledger Transfer
An internal ledger transfer is a transfer of value recorded within the books of a platform rather than directly on a public blockchain.
Explanation
Exchanges, custodians, and payment providers may update user balances internally when both parties are on the same platform. This can make transfers faster and cheaper, but it reduces the visibility and trust minimization associated with on-chain settlement.
Why it matters
Internal transfers are common in practice and materially affect the speed, cost, and transparency of payment flows.
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