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Settlement
Settlement is the process through which a completed trade is finalized and the asset and payment are transferred between the relevant parties. Traditional financial markets may settle after the trade date, while some blockchain based systems can support much faster settlement.
Why it matters to you
A trade being agreed does not necessarily mean ownership and payment have already been fully transferred. Tokenized infrastructure can reduce settlement times in some structures, potentially reducing the period during which parties remain exposed to settlement related risks.
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