How Does the Concept of Confirmation Relate to Settlement Cycles (T+2)?

Blockchain confirmation provides near-instantaneous settlement finality, in stark contrast to the traditional T+2 (Trade date plus two business days) settlement cycle. T+2 is used to manage counterparty and operational risk.

Blockchain finality eliminates this delay, offering T+0 or T+instant settlement, drastically reducing settlement risk and capital lockup.