Definition ∞ This refers to the final and irreversible transfer of ownership for securities that have been digitally represented as tokens on a blockchain. It leverages distributed ledger technology to automate and streamline the post-trade process, potentially reducing settlement times from days to minutes or seconds. This method aims to enhance efficiency and transparency.
Context ∞ Tokenized securities settlement is a rapidly developing area, offering a modern alternative to conventional settlement systems. The discussion centers on its potential to reduce operational costs, minimize counterparty risk, and enable fractional ownership of assets, thereby improving liquidity and access within capital markets.