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Stablecoin Payments Glossary

Counterparty Risk

Counterparty risk is the risk that an intermediary or transaction partner fails to perform its obligations.
In payment flows, this may involve a processor, exchange, custodian, or merchant failing to complete conversion, payout, or settlement. Counterparty exposure increases where payment flows depend on centralized intermediaries.
Counterparty risk shapes the reliability and trust profile of stablecoin payment arrangements.