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How Can Stablecoins Be Used to Settle Options Contracts Instantly?

In a decentralized options protocol, stablecoins are used as the medium of exchange for option premiums and final contract settlement. Since stablecoins are tokenized and exist on the blockchain, the settlement process is executed instantly and automatically by the smart contract upon expiration or exercise.

This eliminates the multi-day settlement delays typical in traditional finance.

How Does the Move to T+1 Settlement in Traditional Markets Compare to T+0 in Crypto?
How Does Tokenization Simplify the Settlement Process for Financial Derivatives?
What Operational Challenges Does Instant Settlement Create for an Institutional Treasury Desk?
What Is the Relationship between Implied Volatility and Option Premiums?