Accelerate funds clearing and settlement to improve liquidity. Trading financial instruments is a complex process. The financial instrument exchange is one part, while the second part is the clearing and settlement of funds from trades. This settlement period is currently three days (T+3), which was established when cash, checks and physical stock certificates were exchanged.
Reimagining Capital Markets
The nanopay digital cash platform enables bank’s back-end systems to instantly clear and settle payments when trading. This will reduce settlement costs and free trapped capital by reducing capital clearing requirements and decreasing margin/liquidity demands. As market forces push to reduce the settlement period, faster payments will become critical as traders and institutional investors look to gain profits more quickly and reduce settlement risk.
nanopay provides key benefits when processing payment from trading financial instruments:
- Instantaneous fully-collateralized payments
- No counterparty risk
- Free trapped capital
- Lower transaction costs
- Link trade metadata to payments