T+1 settlement refers to a transaction settlement cycle where the exchange of securities and funds occurs one business day after the trade date. This expedited process reduces counterparty risk and enhances market efficiency compared to longer settlement periods. It represents a move towards faster financial transaction finality in traditional markets.
Context
News often discusses T+1 settlement in the context of modernizing traditional financial markets and its potential implications for the digital asset space. The ongoing debate involves the benefits of faster settlement in reducing systemic risk versus the operational adjustments required for market participants. The digital asset industry, with its often near-instantaneous settlement, frequently serves as a reference point for the potential of further acceleration in traditional finance.
DLT platform 1Source eliminates reconciliation breaks in the $4 trillion securities lending market, securing the transition to T+1 settlement and optimizing capital mobility.
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