Technology / Settlement
Smart Contracts for Financial Settlement
Smart contracts automate settlement by encoding transaction logic, compliance verification, and regulatory requirements directly into executable code.
Summary
Smart contracts transform settlement from manual coordination to automated execution, verifying compliance and executing transfers simultaneously.
What happened
Canton Network smart contracts automatically transfer securities and cash simultaneously, calculate interest, verify collateral ratios, and execute termination at maturity.
Business goal
- Automate end-to-end settlement processes
- Embed compliance verification in transaction execution
- Eliminate settlement failures through pre-verification
Impact
- Settlement either occurs automatically or fails explicitly
- Regulatory requirements become transaction prerequisites
- Manual coordination errors become impossible