Settlement Upon Payment
Immediate finalization of transactions upon initiation in digital systems.
What is Settlement Upon Payment?
Settlement upon payment occurs when funds are transferred and cleared instantly, as in blockchain-based stablecoin transactions like USDC on Visa’s platform. In CBDCs like e-CNY, this feature ensures real-time value transfer without intermediaries, reducing counterparty risks.
For digital assets, it enables efficient cross-border settlements, cutting times from days to seconds and costs by up to 50%, as demonstrated in projects like mBridge. This contrasts with traditional systems where settlement lags payment, potentially leading to disputes or liquidity issues.
Related Terms
Mainnet
The primary, public blockchain network where real-world transactions and digital assets are processed.
Wisdom of the Crowds
The phenomenon where the collective judgment of a diverse group often surpasses individual or expert predictions.
Pendle
A DeFi protocol for tokenizing and trading future yields from digital assets, enabling users to separate principal from yield for fixed-rate strategies and speculation.
Price Oracle
A mechanism providing real-time price data for digital assets in DeFi protocols.
Public Good
Valuable information generated by prediction markets that benefits society without direct cost to non-participants.
Machine-to-Machine Transactions
Automated digital asset exchanges between systems without human intervention.