Can someone explain to me how does the Ethena’s off-exchange settlement work? It says that the asset is not deposited on a centralized exchange at all and only uses an “off-exchange settlement” mechanism.

Ethena employs non-US custody services like Copper, Ceffu, + Fireblocks to safeguard digital assets. These entities handle the secure holding of assets, offloading the custodial responsibilities from Ethena. This setup enhances risk management + enables efficient asset managmnt by ensuring safety + operational agility.

views are my own, protocol @ eigen labs; prev working on decentralization @ gitcoin, llama, stanford medicine.