In the crypto securities space, instant asset transfers and 24/7 trading promise improved access, but the absence of mature and standardized settlement protocols leaves both issuers and investors exposed to failed or reversible transactions.

This undermines trust, limits participation from traditional financial players, and hampers the potential for these assets to be integrated into mainstream portfolios.

Most blockchain settlement models rely on public consensus mechanisms, which can lead to unpredictable finality times or even forks that destabilize settlements.

Regulatory fragmentation and technological limitations hinder the creation of cross-chain or cross-institution settlement assurances, preventing wider institutional adoption.

Some private blockchains provide faster finality but lack interoperability, while public chains cannot guarantee finality within institutional risk parameters.

Current third-party settlement providers are nascent and limited in scope, and most lack regulatory compliance needed for large players.