Digital Currency

To truly understand the significant differences between traditional stocks and digital currencies in terms of trading and settlement, we need to deeply grasp the core “components” and “rules” that make up each ecosystem. We can view them as two entirely different games: one a rigorous, multi-party collaborative “profe

Unlike traditional stock markets with defined opening and closing times, the digital currency market has attracted the attention of global investors due to its 7x24-hour continuous trading feature. This characteristic has also raised a core question: how are digital currencies cleared and settled in a world without a “market close” concept? Does it completely overturn these concepts in traditional finance? The answer is that digital currencies not only have clearing and settlement, but the way they are implemented and their system design are key to supporting all-day trading.

Stablecoins have already gained legal status in the United States and Hong Kong. This allows for more efficient capital flows globally, and gray areas are bound to exist if not regulated – similar to how the US manages opioid addiction. Stablecoins are crypto assets pegged to fiat currencies (such as the US dollar or Hong Kong dollar) or precious metals, designed to maintain their value stability. They are primarily divided into three categories: fiat-backed (such as USDT, USDC), commodity-backed (like stablecoins backed by gold reserves), and algorithmic (which do not rely on physical reserves but instead use algorithms to maintain their peg)([zh.