The DTCC on their website talked about a open leg and a closed leg in regards to blockchain and Cryptocurincies what does that mean?
The Depository Trust & Clearing Corporation (DTCC) is a financial industry utility that provides clearing, settlement, and other services for securities transactions. In the context of blockchain and cryptocurrencies, “open leg” and “closed leg” may refer to different types of transactions or processes that are supported by the DTCC.
An “open leg” transaction refers to a transaction that is recorded on a public blockchain, such as the Bitcoin blockchain. These transactions are visible to anyone and can be verified and confirmed by anyone on the network. Open leg transactions are considered to be more transparent and secure because the ledger is decentralized and distributed among many participants.
A “closed leg” transaction, on the other hand, refers to a transaction that is recorded on a private blockchain. These transactions are only visible to a select group of participants and are not easily verifiable by the public. Closed leg transactions can be useful for certain types of applications, such as those that require a higher degree of privacy or regulatory compliance.
It is important to note that different firms may use those terms differently or to refer to different concepts, it is always better to check the context in which they are being used in.