An Asset Clearing Account (ACA) is a type of financial account that facilitates the exchange of assets between counterparties in order to clear and settle trades. It works by providing an individual or business with a secure, real-time view of their asset holdings and positions. This enables them to quickly make decisions on buying, selling, or transferring their assets. By using an ACA, businesses can reduce risk while gaining efficiency in the movement of assets. Additionally, this account can be used to automate dividend payments and record keeping, saving time and money.