Settlement

Settlement is the final step in completing a Channel Revenue Token (CRT) trade on the GigaStar Secondary Market. It encompasses the process of transferring ownership of the CRT from the seller to the buyer and simultaneously transferring payment from the buyer to the seller. Until settlement is complete, a trade is considered pending and neither party has finalized their side of the transaction.

In traditional securities markets, settlement typically follows a standardized timeline. The GigaStar Secondary Market, operated by GigaStar Securities as a broker-dealer, follows its own settlement procedures designed for the CRT asset class. The specific settlement timeline and process are outlined in the platform's terms and conditions.

During the settlement process, several important steps occur. The system verifies that the seller holds the CRTs being sold and that the buyer has sufficient funds to complete the purchase. The CRT ownership records are updated to reflect the new holder, and the corresponding payment is processed. Once settlement is complete, the buyer becomes the new CRT holder and is entitled to future monthly distributions.

For both buyers and sellers, understanding the settlement process is important for managing expectations around when ownership transfers and when funds become available. Pending trades that have not yet settled may restrict the seller from making additional trades with those same CRTs and may restrict the buyer's funds until the process completes.

Settlement also has implications for distribution timing. If a trade settles close to a distribution date, Investors should understand the rules governing which party—the buyer or the seller—is entitled to the upcoming distribution. These details are typically specified in the Secondary Market's operating rules and trading agreements.