Transparent Settlement

Definition ∞ Transparent settlement refers to the process of finalizing financial transactions in a manner where all relevant parties can verify the details and outcome of the exchange. This clarity ensures accountability and reduces the potential for disputes or hidden fees. It is a key attribute for building trust in financial systems.
Context ∞ In the digital asset space, transparent settlement is a core advantage of blockchain technology, as all transactions are recorded on an immutable, public ledger. News often highlights how this feature reduces counterparty risk and operational costs in various decentralized finance (DeFi) applications. The discussion sometimes concerns the balance between transparency and privacy, particularly for institutional participants requiring certain levels of confidentiality.