Definition ∞ Fiat Settlement refers to the completion of a financial transaction using traditional government-issued currency, such as US dollars or Euros. In the context of digital assets, it signifies the conversion of cryptocurrencies or other tokens into fiat money, thereby concluding a trade or payment. This process is essential for bridging the digital asset ecosystem with conventional financial systems. It represents a crucial step for liquidity and the realization of value from digital holdings.
Context ∞ The ability to achieve fiat settlement efficiently and securely remains a key factor for the mainstream adoption of digital assets. News reports often discuss new partnerships between cryptocurrency exchanges and traditional banks to streamline fiat settlement processes. Regulatory frameworks are increasingly focused on ensuring compliant fiat settlement pathways to prevent illicit financial activities.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
