Discover how Decentralized Finance (DeFi) impacts the accounting industry, the role of crypto accounting, and the features of dedicated crypto accounting software.
The other participant in a financial transaction.
A counterparty is the other party that participates in a financial transaction. Every transaction must have a counterparty for the transaction to go through. More broadly, every financial contract involves a counterparty who carries the opposing risk to one's own position in a trade or contract. In crypto, this could refer to the other party in a trade, loan, or smart contract.
The counterparty in a Bitcoin trade on a decentralized exchange.