Discussion Paper
What Is Atomic Settlement?
Abstract: Distributed ledger technologies (DLTs) have garnered growing interest in recent years and are making inroads into traditional finance. One purported benefit of DLTs is their ability to bring about “atomic” settlement. Indeed, several recent private sector projects (SDX, Fnality, HQLAx) aim to do just that. But what exactly is atomic settlement? In this post, we explain that atomic settlement, as it is often defined, combines two distinct properties: instant settlement and simultaneous settlement, which should be kept separate.
Keywords: Intermediation (Finance); atomic settlement; distributed ledger technology; digital assets;
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https://libertystreeteconomics.newyorkfed.org/2022/11/what-is-atomic-settlement/
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Bibliographic Information
Provider: Federal Reserve Bank of New York
Part of Series: Liberty Street Economics
Publication Date: 2022-11-07
Number: 20221107