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Interoperability

Trading Term

Interoperability is the ability of independent blockchains to exchange assets, data, or instructions with the goal of never needing to rely on centralized intermediaries. Functionally, it’s analogous to cross-border clearing between distinct financial systems—but executed via protocol-level standards or bridging mechanisms. For capital markets, interoperability reduces liquidity fragmentation, enables cross-chain collateral mobility, and supports multi-chain trading and settlement strategies without requiring asset liquidation.

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