Continuous Settlement

Definition ∞ Continuous Settlement represents a financial system where transactions are finalized and recorded without delay, typically in real-time or near real-time. Unlike traditional batch processing, each transaction is settled individually and immediately upon execution. This approach significantly reduces counterparty risk and operational complexities associated with deferred settlement cycles. It ensures that ownership and funds are transferred promptly and definitively.
Context ∞ Continuous settlement is a key characteristic and advantage frequently cited in discussions surrounding blockchain technology and digital assets. Crypto news highlights how this capability mitigates systemic risk and improves capital efficiency in markets operating 24/7. The ongoing regulatory discourse often considers how to align traditional financial infrastructure with the instantaneous finality offered by distributed ledger systems.