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Low Latency Settlement

Definition

Low latency settlement refers to the rapid completion of financial transactions, where the time between trade execution and the final transfer of assets and funds is minimized. In digital asset markets, this means transactions are finalized on the blockchain with very little delay, reducing counterparty risk and improving capital efficiency. Achieving low latency is a key objective for high-frequency trading and large-scale financial operations. It significantly impacts market liquidity and operational risk.