How Does Layer 2 Finality Compare to Traditional Finance Settlement Times for Derivatives?

Layer 2 finality, especially with ZK-Rollups, can be near-instant, often settling in seconds or minutes once the proof is verified on Layer 1. Traditional finance (TradFi) derivatives settlement, like for futures or options, typically follows a T+2 or T+3 schedule, meaning settlement takes two or three business days.

This dramatic difference in speed is a core advantage of decentralized finance (DeFi), significantly reducing counterparty and settlement risk.