Asset Settlement

Definition ∞ Asset Settlement is the final transfer of ownership of an asset from a seller to a buyer. This process confirms that the transaction is complete and both parties have fulfilled their obligations. In digital asset markets, settlement often occurs on a blockchain, ensuring immutability and transparency of the transfer. It is the critical point where a trade is irrevocably finalized, transferring control and ownership of the digital asset. Context ∞ The context for Asset Settlement in cryptocurrency news frequently involves discussions around faster settlement times, the reduction of counterparty risk, and the implementation of atomic swaps or cross-chain settlement mechanisms. As decentralized exchanges and regulated platforms strive for greater efficiency and security, innovations in settlement protocols are a key area of development. Understanding settlement processes is essential for comprehending the operational integrity and risk profiles of various digital asset trading venues and financial instruments.