Settlement within the T-0 Network operates on a bilateral basis between providers using USDT stablecoin transactions on Ethereum-compatible blockchains. This mechanism provides transparency, immutability, and real-time settlement capabilities that far exceed traditional correspondent banking arrangements.

When credit utilization between two providers approaches established limits, the debtor provider initiates a settlement by submitting a USDT transfer to the creditor provider’s registered blockchain address. The network continuously monitors blockchain events, specifically tracking transactions between registered provider addresses to automatically recognize and process settlement activities.

Upon detecting a valid settlement transaction, the network immediately updates credit utilization balances, reducing the debtor’s outstanding credit usage by the USD equivalent of the USDT settlement amount. This process typically completes within minutes of blockchain confirmation, enabling providers to quickly restore their payment capacity and continue processing transactions.

The blockchain-based settlement approach provides several advantages over traditional settlement methods. All settlement transactions are publicly verifiable on the blockchain, eliminating disputes about settlement timing or amounts. The automated recognition system reduces operational overhead and ensures immediate credit restoration without manual intervention. Additionally, the use of USDT provides stable value transfer without exposure to cryptocurrency volatility.