Definition ∞ Global trade settlement refers to the final exchange of payments and ownership documents between parties in international transactions. This process completes an international trade deal, ensuring that goods are delivered and payments are received according to agreed terms. It often involves multiple financial institutions, complex documentation, and cross-currency exchanges, which can be time-consuming and costly. Distributed ledger technologies offer solutions to streamline and accelerate this settlement process.
Context ∞ The current discussion regarding global trade settlement focuses on reducing delays and costs associated with traditional banking correspondent networks and manual document verification. There is growing interest in using blockchain and digital currencies to enable near real-time, atomic settlements for international transactions. A critical future development involves the establishment of standardized digital payment rails and legal frameworks for tokenized trade assets. This advancement is crucial for modernizing trade finance digitization.
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