Definition ∞ 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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