Post-Trade Servicing

Definition ∞ Post-Trade Servicing encompasses the collection of activities that occur after a financial trade is executed. These include processes such as clearing, settlement, custody of assets, and regulatory reporting. This stage ensures that transactions are finalized and recorded accurately. Blockchain technology offers potential for streamlining these traditionally complex and time-consuming processes.
Context ∞ This area represents a significant focus for innovation in both traditional and digital asset markets. Distributed ledger technology is being explored for its ability to reduce counterparty risk, shorten settlement cycles, and improve overall market efficiency. The transformation of post-trade servicing is a key driver for broader institutional adoption of digital assets.