Definition ∞ Bilateral settlement denotes a direct exchange of assets or obligations between two parties without the need for an intermediary clearinghouse. This process concludes a transaction by moving assets from one participant to another. It typically occurs when two entities agree to a direct transfer, finalizing their respective positions. The direct nature often aims for reduced counterparty risk and increased efficiency.
Context ∞ Bilateral settlement in digital asset markets is gaining traction for reducing costs and speeding up transaction finality. News frequently covers its application in institutional trading or over-the-counter markets. Regulatory bodies assess its implications for market stability and transparency, particularly concerning systemic risk.
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