High-Frequency Settlement

Definition ∞ High-Frequency Settlement refers to the rapid completion of financial transactions, where the transfer of assets and corresponding payments occurs almost instantaneously. This process significantly reduces settlement risk and improves capital efficiency by minimizing the time between trade execution and final ownership transfer. It is a key characteristic of modern financial market infrastructure.
Context ∞ In digital asset markets, High-Frequency Settlement is a core advantage of blockchain technology, particularly for stablecoins and certain layer-2 solutions. The situation involves ongoing efforts to scale transaction throughput while maintaining security and decentralization. A critical future development is the broader adoption of real-time gross settlement systems leveraging distributed ledger technology for both traditional and digital assets.