TradFi vs Musubi

In traditional finance, a cross-border FX payment involves three separate systems operated by different providers. Musubi collapses all three into a single atomic operation.

Three Systems, One Transaction

Function	TradFi	Musubi
FX execution	Trading venue or bank dealer (Bloomberg, 360T, bank’s internal desk)	Built-in competitive RFQ — market makers bid, institution selects best price
Settlement	CLS Bank (PvP settlement, 5-hour daily window, pre-funding required)	Atomic 4-leg DvP — both currency legs in one transaction, ~4 seconds
Cross-border delivery	Correspondent banking chain (SWIFT messages, 2-4 intermediary banks, 1-3 days)	Direct custodian-to-custodian delivery as part of the atomic settlement

In tradfi, you negotiate the FX rate on one system, submit the trade to CLS for settlement on another, and wire the proceeds via correspondent banks on a third. Each handoff introduces latency, cost, and risk. On Musubi, one API call triggers all three: the institution submits a payment intent, market makers compete on price, and settlement + delivery happen atomically in a single transaction.

Where the Risk Lives

Risk	TradFi	Musubi
Counterparty risk	Present between trade and CLS settlement (hours to days)	Eliminated — atomic DvP, no time gap
Herstatt risk	Mitigated by CLS but not eliminated outside CLS hours	Eliminated — both legs in one transaction
Settlement failure	Partial settlement possible; manual resolution required	Impossible — all four legs succeed or all roll back
Correspondent risk	Each intermediary bank in the chain is a failure point	No intermediaries — direct custodian-to-custodian
FX execution risk	Rate can move between trade and settlement	Rate locked at quote acceptance, settlement in ~4 seconds

What Each Participant Replaces

Institution
Custodian
Market Maker

Today	With Musubi
Call your FX desk or log into a trading platform	Submit a payment intent via API
Negotiate rate with one or two dealers	Receive competing quotes from multiple market makers
Instruct your correspondent bank to wire proceeds	Settlement + delivery happen automatically after quote acceptance
Wait 1-3 business days for confirmation	Settlement confirmation in ~15 seconds
Reconcile across SWIFT messages, FX confirmations, and bank statements	One Canton transaction covers all four legs — nothing to reconcile between them

Today	With Musubi
Receive instructions via email/portal, manually approve	Co-sign trades cryptographically via API
Wait for settlement confirmation from CLS/correspondent	Active participant in atomic DvP — your signature is required
Reconcile across multiple message types	One Canton transaction per settlement, keyed by `intent_id`

Today	With Musubi
Quote on voice, chat, or electronic venues (known counterparty)	Quote via anonymized RFQ (counterparty identity never revealed)
Manage settlement risk during CLS window	No settlement risk — atomic DvP
Pre-fund CLS positions intraday	No pre-funding — assets committed only at settlement execution

The CLS Analogy

Musubi is closest in function to CLS Bank (Continuous Linked Settlement) — both eliminate counterparty risk by settling both currency legs simultaneously.

	CLS	Musubi
What it settles	Fiat FX (18 currencies)	Stablecoin FX (JPYSC0/USDCx)
FX execution	Separate — done before CLS	Built-in — competitive RFQ is part of the flow
Settlement speed	5-hour daily window	~15 seconds, 24/7
Pre-funding	Required during settlement window	Not required
Participants	~70 settlement members (major banks)	Institutions + custodians + market makers
Cross-border delivery	Separate — via correspondent banking after CLS	Included — custodian-to-custodian delivery is part of the atomic settlement
Mechanism	Multilateral netting + simultaneous settlement	Gross atomic 4-leg DvP

The key difference: CLS only settles. You do the FX trade elsewhere and bring it to CLS. You deliver the proceeds elsewhere via correspondent banking. Musubi does FX execution, settlement, and cross-border delivery in one atomic operation.

Gross settlement (every trade settles individually) works here because settlement is instant. CLS uses netting to reduce liquidity requirements across a 5-hour window. When settlement takes 4 seconds, netting is unnecessary.

Overview

Security & Privacy

Technical

TradFi vs Musubi

Three Systems, One Transaction

Where the Risk Lives

What Each Participant Replaces

The CLS Analogy

​Three Systems, One Transaction

​Where the Risk Lives

​What Each Participant Replaces

​The CLS Analogy

Three Systems, One Transaction

Where the Risk Lives

What Each Participant Replaces

The CLS Analogy