How Does the Settlement Process for a Security Token Differ from a Traditional Stock Trade?

Traditional stock trades typically settle in T+2 days (Trade date plus two business days) through a centralized clearing house. Security token trades, leveraging blockchain technology, can settle nearly instantaneously (T+0) and atomically (simultaneously exchanging the token and the payment).

This eliminates counterparty risk and the need for a central clearing house, drastically reducing settlement time and cost.