N3XT has joined Clear Markets’ Collateralizer network as a custodian for US dollar deposits used as collateral in 24/7 derivatives trading.
US-based Clear Markets and N3XT, a fully reserved, Wyoming-chartered US bank, have announced that N3XT has joined Clear Markets’ Collateralizer network as a custodian for US dollar deposits, while Clear Markets is opening an account with N3XT. Institutions will be able to pledge US dollars held at N3XT, managed on Clear Markets’ multi-custodian platform, as collateral for 24/7 transactions. These include forwards, options, and swaps traded on the Clear Markets Swap Execution Facility (CMSEF), as well as funding for third-party exchanges and security for borrowing.
Collateral management around the clock
CMSEF is a CFTC-regulated swap execution facility for 24/7 institutional digital asset and crypto derivatives trading on a single global order book. The Collateralizer is a separate collateral management service from Clear Markets that connects independent bank custodians for margin and collateral workflows. Under the arrangement, N3XT provides cash custody and account control agreements, while Clear Markets provides the collateral management technology without taking custody of client funds.
Institutions can allocate collateral and meet initial and variation margin calls as portfolio values change, while the dollars remain at an independent bank custodian. Because N3XT’s programmable payments move between N3XT accounts 24 hours a day, seven days a week, margin can move on the same schedule as overnight and weekend trading in digital asset and crypto derivatives. Shawn Dorsch, President of Clear Markets, stated that the aim is to make it easier for institutions to trade swaps and other derivatives while holding their collateral at an independent bank custodian, bringing regulated swap execution, cash custody, and collateral management together on digital rails.
Dollar infrastructure for continuous markets
Jeffrey Wallis, CEO and President of N3XT, stated that capital markets are moving towards a 24/7 environment and that institutions need dollar infrastructure that can move instantly with the markets. According to Wallis, connecting N3XT’s 24/7-dollar rails to the Collateralizer network allows clients to use cash held at N3XT as collateral for institutional digital asset and real-world asset trading on-chain.
N3XT is a full-reserve digital bank built on a private, permissioned blockchain that enables businesses to send, receive, and reconcile US dollar payments around the clock. It does not lend, and all deposits are backed 1:1 by cash and short-term US Treasuries. The two companies are exploring further ways to use round-the-clock dollars across trading, collateral, and settlement workflows. The arrangement addresses the gap between derivatives markets that trade continuously and the dollar collateral that supports them, which has traditionally depended on banking hours to move.
