OTC engine · Vault-to-vault settlement
OTC trades on ProteonX: listings with real settlement
On ProteonX, OTC is not a spreadsheet and a phone call. It is a structured engine: listings, reserve locks, and vault-to-vault PXN operations — with no manual “desk moves” behind the screen.
1. What OTC means on ProteonX
OTC on ProteonX is for negotiated deals between vaults — members, partners, or institutions — using the same deterministic rail that powers normal PXN transfers.
Structured, not improvised
Every OTC deal lives as a structured object in the system.
- Who gives / who takes: vault profiles on each side.
- What is exchanged: assets (e.g. PXN, INV, stables) and amounts.
- Price and notional: PXN-based pricing and USD notional for reporting.
- Status lifecycle: draft → compliance → listed → partially filled / filled / cancelled.
The engine knows at every moment whether a trade is pending, listed, on hold, or fully settled. No hidden spreadsheets, no “we’ll adjust later”.
This is the difference between “OTC as marketing” and OTC as an actual vault-to-vault settlement system. ProteonX lives in the second category.
On ProteonX there is no “fake settlement”: either the assets are really in the vault pockets or the trade is impossible. If there is no reserved balance, the engine simply refuses to execute — no override, no manual fraud button.
Reserve locks, not promises
When a trade is listed, ProteonX locks value at the vault level.
- Assets on the “give” side are reserved in the originating vault.
- Reserved amounts cannot be double-spent while the trade is live.
- Settlement updates both sides with real PXN operations.
From the user’s perspective, it looks like a normal OTC listing UI. Under the hood, it is hard-linked to vault pockets and the PXN journal.
2. Example: member lists INV for PXN
Simplified example of how a member can list an INV position for PXN and what the engine does.
Scenario: a member wants to swap a block of INV into PXN via the OTC engine.
- Member vault: a normal “member” profile with an INV pocket and a PXN pocket.
- Give: 100 INV.
- Take: 10,000 PXN (example price 100 PXN per INV).
- Resulting notional: 10,000 PXN worth of value (for reporting in USD terms).
- Creates a trade object with “give INV / take PXN” and the quantities above.
- Locks 100 INV in the member’s INV pocket as a reserved amount.
- Marks the trade as listed and ready for counterparty interest.
- Compliance checks are applied according to policy and partners.
- The engine settles vault-to-vault:
- 100 INV moves from seller’s INV pocket to buyer’s INV pocket.
- 10,000 PXN moves from buyer’s PXN pocket to seller’s PXN pocket.
- Reserve lock is released, trade status becomes filled, and balances update.
The OTC UI lets members create, view, and manage deals. The balance changes are always done by the engine as PXN operations, never by an admin manually “fixing numbers” in a back office.
3. Private deals, listed deals, and partner flows
Private and listed modes
Same engine, different visibility.
- Private OTC: negotiated directly between known vaults.
- Listed OTC: visible to eligible members under defined rules.
- Status-driven: trades can be held, paused, or closed by policy, not by hand-editing.
In both cases, the settlement path is identical: reserve → approve → PXN operations → balances updated.
Institutional & partner use
Institutions can plug their own systems into the OTC and settlement layer.
- Banks and EMIs can originate institutional OTC flows via connectors.
- Partners can use ProteonX as a neutral, high-speed settlement hub.
- Their own ledgers and risk systems stay in place; ProteonX provides the rail and journal.
From a partner’s point of view, ProteonX is a SWIFT-age settlement rail with real-time OTC capabilities: speed of digital rails, but with fully-auditable operations instead of opaque back-office processes.
4. No manual switches, no hidden levers
Protocol first, humans second
- Trades are created, listed, and settled strictly by engine rules.
- Reserve locks and balance changes always come from PXN operations.
- No operator can “move coins” or “fix balances” outside the journal.
This is the difference between “OTC as marketing” and OTC as an actual vault-to-vault settlement system. ProteonX lives in the second category.