TLDR Tech / Crypto
Why liquidity isn't the same as being able to settle
An entity can hold ample aggregate liquidity yet still fail to settle an obligation because eligible cash or collateral may sit in the wrong account, custodian, or correspondent bank at the critical moment. Tempo's new report on liquidity mobility demonstrates shared settlement layers with private execution could shrink the cash and collateral buffers institutions must preposition, though faster settlement doesn't automatically reduce funding needs if netting is lost.
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