The settlement gap

A trade and its payment sit on two different ledgers today, so settlement takes a day. That gap is not free — money moved for a trade that has not yet settled is locked, earning nothing for anyone. Put your own numbers in and see what the gap costs.

Figure

Under today's T+1 settlement If you trade crore of CDs per day at a prevailing rate of %, you have ₹500 crore of settlement float sitting idle on any given business day. Over a year, that float costs you ₹35 crore in forgone interest.

Under tokenised settlement The asset and the money change hands in the same atomic operation. The float is ₹0. The ₹35 crore goes back to your balance sheet.

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Part of Retail Tokenisation in Ex Machina. Other explorables.