Settlement
Settlement is the moment a trade is actually completed: security against money; on the blockchain this can happen in seconds instead of days.
Explained simply
When you buy a share today, the trade is agreed immediately, but the share and the money only actually change hands one or two days later ("T+1" or "T+2"). In between, both sides carry a risk.
On the blockchain, security tokens and money tokens can be exchanged within one and the same transaction. Either both happen or nothing does ("atomic"). The interim risk disappears.
From the familiar world
When buying a house you pay first, then the notary waits for the land registry entry, and only then is the house yours. Atomic settlement would be: payment and registry entry in the same instant, or not at all.
An example
Since 2023 central banks and exchanges have been testing blockchain-based settlement of securities transactions with central bank money. The ECB ran a pilot phase with dozens of banks.
Why it matters
Shorter settlement ties up less capital and lowers default risk. That is why the financial industry is seriously investing in blockchain infrastructure, quite independently of cryptocurrencies.
To pass on
„Today it takes two days before a share you bought is really yours. On the blockchain it is the same instant.“
The content of this wiki is for general information and educational purposes only. It does not constitute investment advice, an investment recommendation or tax or legal advice. Digital assets are subject to strong price fluctuations and can lead to losses up to a total loss. Content as of 2026, no guarantee of completeness or timeliness.
21 Oaks Capital GmbH acts as a tied agent exclusively for the account and under the liability of AHP Capital Management GmbH, Weißfrauenstraße 12-16, 60311 Frankfurt am Main, Germany. This wiki is a general information service provided by 21 Oaks Capital GmbH. Its content does not constitute individual investment advice and is not a recommendation by AHP Capital Management GmbH. 21 Oaks Capital GmbH, its affiliated companies, the funds it advises or its employees may hold positions in assets explained in this wiki. The explanations are independent of this; the disclosure is made for reasons of transparency.