Crypto Trade Settlement

When a crypto trade occurs on the Cybrid platform, several behind-the-scenes steps take place, and specific timelines are followed. Crypto trades are not settled immediately; instead, they are collected and grouped multiple times daily during designated settlement windows. These settlement batches include trades from all customers on the Cybrid platform, across all partners. It is important to note that Cybrid cannot process a settlement for an individual trade outside of the settlement window.

Trade State Cycle

The following steps are part of the trading process:

• A trade quote is created on the platform for a customer (or bank).
• The trade quote is executed via the /trades endpoint, transitioning the trade into the pending state, if successful.
• The trade moves to the executed state once it is included for processing in the next settlement batch. At this stage, funds associated with the trade are collected from the platform (fiat/trading) accounts and are reflected under the platform_balance value.
• The settling state indicates that the trade has been submitted to the liquidity provider and is being processed, involving one of the following steps:
  • Fiat or cryptocurrency is transferred from Cybrid to the liquidity providers.
  • Fiat or cryptocurrency is received from liquidity providers by Cybrid.
• Once Cybrid receives the traded asset (either fiat or cryptocurrency), the trade transitions to the completed state, and the platform_available value of the underlying platform (fiat/trading) accounts will be updated.

Trade Settlement Timelines

Trade settlements occur every hour from 9 AM to 5 PM Eastern Time on weekdays, excluding bank holidays. Each trade settlement takes approximately 30 minutes to 1 hour for stablecoins (such as USDC and USDT) and between 1 and 2 hours for cryptocurrencies (such as BTC and ETH). Any trade executed after 5 PM Eastern will be batched and settled in the next processing day's 9 AM batch.

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Please be aware that various factors can influence the settlement timeline, including:

• Weekends and bank holidays
• Delays in banking infrastructure and FedWire wire transfers
• Delays from liquidity providers in settling wires or releasing crypto assets
• Crypto network congestion and blockchain confirmations
• Compliance screening policies and manual compliance reviews

In exceptional circumstances, additional trade settlements may be executed only on processing days, and not before 9 AM Eastern or after 5 PM Eastern.

Bitcoin Lightning Network

Settlement for Bitcoin Lightning transactions is initiated once a day with the 9 AM Eastern trade settlement.