Settlement

Settlement is the process of completing a financial transaction by transferring the asset from the seller to the buyer and the payment from the buyer to the seller. In traditional finance, settlement can take days (T+1 or T+2). Blockchain technology enables near-instant settlement because the transfer of ownership is recorded on the distributed ledger as soon as the transaction is confirmed. This reduction in settlement time is one of the key advantages of blockchain-based financial systems, eliminating counterparty risk during the settlement period.