Gross Settlement Systems

Real-time gross settlement systems process transactions individually rather than in batches. Each payment or asset transfer is settled immediately and separately on a one-to-one basis.

This eliminates the credit risk associated with netting, as there is no build-up of net obligations over time. However, this approach requires participants to maintain higher levels of liquidity to ensure they can settle each trade as it occurs.

In the context of digital assets, native blockchain transfers function as a form of gross settlement. This method is preferred for high-value transactions where speed and certainty are prioritized over the capital efficiency provided by netting.

It provides immediate transparency regarding the movement of assets.