N3XT joined Clear Markets’ Collateralizer network as a dollar custodian on 15 October, giving institutional traders a route to pledge bank-held cash for round-the-clock derivatives activity. The arrangement supports collateral for forwards, options and swaps on Clear Markets’ swap execution facility.[1]
Who holds and controls each part of the workflow
| Function | Published arrangement |
|---|---|
| Cash custody | N3XT holds the dollars and supplies account-control agreements.Source 1 |
| Collateral management | Clear Markets allocates and manages collateral through Collateralizer without taking custody of client funds.Source 1 |
| Trading venue | Clear Markets North America is a registered swap execution facility; the CFTC register dates that registration to 27 June 2016.Source 3 |
The companies say clients can manage initial and variation margin as portfolios change. Other supported uses include security for borrowing and funding third-party exchanges, subject to agreed custody and control arrangements.[1]
N3XT’s bank model helps explain the cash side. It says it does not lend deposits and holds them in cash and liquid government Treasury instruments. The bank publishes its securities portfolio daily. Its website also states that deposits are not FDIC insured, so the full-reserve model and federal deposit insurance should be understood separately.[2]
The payment network’s boundary matters just as much as its operating hours. N3XT describes instant transfers within its own platform and a protected internal network. That provides a way to move dollars between participating accounts through nights and weekends. It does not make every external bank transfer continuously available; a desk still needs the relevant balances inside the network for that internal payment route.[2]
The practical change is closer alignment between the trading clock and the collateral clock. The bank maintains the cash account, the venue handles execution, and Collateralizer supplies the allocation technology. That division lets an institution use an independent custodian alongside the trading relationship.[1]
Sources & further reading
- Clear Markets and N3XT Bring 24/7 U.S. Dollar Custody to the Collateralizer® Network N3XT · 15 Oct 2026 · Accessed 20 Oct 2026
- N3XT: full-reserve bank with programmable, real-time settlement N3XT · Accessed 20 Oct 2026
- Industry Filings: Swap Execution Facilities Commodity Futures Trading Commission · Accessed 20 Oct 2026