Supply Chain Settlement

Definition ∞ Supply chain settlement refers to the finalization of financial transactions between parties involved in a supply chain, from raw material suppliers to end consumers. This process often involves complex payment terms, multiple currencies, and numerous intermediaries. Blockchain technology offers a method to streamline supply chain settlement by enabling near-instant, transparent, and immutable transfers of value. This can significantly reduce payment delays and operational costs.
Context ∞ The discussion surrounding supply chain settlement in the digital economy frequently highlights the application of distributed ledger technology to enhance efficiency and transparency. A key development involves integrating digital currencies and smart contracts to automate payment triggers based on verifiable events. Future advancements will likely see wider adoption of blockchain-based solutions, optimizing global trade finance.