Background

How BlockSettle Works

Background

The impetus behind the founding of BlockSettle came from concerns regarding the need to rely on third-party custodians when exchanging a blockchain asset for an asset held as a “book entry record" (cash). Third-party custodianship of blockchain ledger assets is widely considered the most significant risk for blockchain stakeholders.

Launched in 2019, BlockSettle ensures that settlement instructions relating to the blockchain component of an underlying matched trade are executed directly between the parties to the transaction without incurring third-party custody risks.

How BlockSettle Works

BlockSettle removes custody risks through the provision of the BlockSettle Terminal which provides its users with operational control over their blockchain balances and real-time access to the BlockSettle trading network.

Users submit and respond to trading interest through a Request-for-Quote (RFQ) procedure where the parties to the trade exchange all relevant information to execute an on-chain transaction with its trade counterpart. In the event that a book-entry balance residing in the BlockSettle system is offered as payment, BlockSettle reserves the balance at the point of order entry and releases the balance when probabilistic settlement finality has been confirmed.

FAQ