Asynchronous settlement describes a transaction completion process where the exchange of assets and funds does not occur simultaneously. Instead, the various components of a transaction, such as payment and asset delivery, are finalized at different times, often across distinct systems. This method contrasts with synchronous settlement, where all parts of a transaction conclude concurrently. Asynchronous models can introduce delays but also offer operational flexibility in complex systems.
Context
In digital asset systems, asynchronous settlement is frequently discussed in the context of cross-chain transactions and interoperability solutions. The potential for settlement risk in these scenarios is a key consideration for market participants and protocol designers. Advancements in atomic swaps and secure messaging protocols aim to reduce risks associated with this settlement type.
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