Settlement Verification
Every execution on the Railr network generates a settlement instruction. Settlement Verification is the infrastructure layer that confirms what happens next. Not assumed. Not self-reported. Verified.
RLR-20260402-000847-9K
Receiving from both parties
The Problem It Solves
Bilateral settlement is the foundation of how Railr works. Participants settle directly with each other. Railr does not intermediate. But without a verification layer, the network has no objective record of whether settlement actually happened, when it happened, and whether it matched the execution terms.
That matters for three reasons.
For participants, it means no real-time visibility into whether a counterparty has settled. You check your own wallet or custodian. The network does not know.
For LP scoring, it means the settlement reliability dimension of the LP Liquidity Score has no objective data source without verification. Self-reported or inferred data is not the same as verified fact.
For the newer products, Yield Coordination and Tokenised RWA RFQ both depend on verified settlement confirmation to function. A yield coordination arrangement where the return leg cannot be confirmed is not a product. An RWA trade where delivery cannot be verified on-chain has no audit trail.
Settlement Verification solves all three.
How It Works
Every execution on the Railr network receives a unique Settlement Reference ID at the point of quote acceptance. This reference tracks the settlement from instruction through to verified confirmation. Settlement verification operates across three paths depending on the product and how the relevant participants settle.
On-Chain Verification
Railr monitors the relevant blockchain and matches the transaction against known settlement parameters.
Participant Attestation
Both parties independently confirm settlement through the platform. Used where on-chain monitoring is not applicable.
Portus Settlement
Portus verifies both deliveries and executes the bilateral transfer simultaneously. Neither party nor Railr can intervene.
On-Chain Verification
For stablecoin and tokenised asset settlements occurring directly on-chain, Railr monitors the relevant blockchain for a transaction matching the settlement parameters. Asset, amount, sending address, receiving address, within the agreed settlement window. When a matching transaction is detected, settlement is automatically confirmed. Both participant activity logs are updated with the verified record including transaction hash, block height, confirmed amount, and timestamp.
Railr is reading publicly available blockchain data and matching it against known settlement parameters. No custody involved at any point.
Participant Attestation
For settlements occurring through custodians or exchange accounts where on-chain monitoring is not possible, both participants receive a structured confirmation request after execution. Each confirms settlement through the platform within the agreed window. When both parties confirm, the settlement record is closed as bilaterally attested.
On-chain verified settlements carry full weight in LP scoring. Attested settlements carry high weight. The distinction is reflected in the settlement reliability metric.
Portus Settlement
Portus settlement is available as an option for stablecoin and tokenised asset trades on the network, including standard Liquidity RFQ stablecoin conversions, Yield Coordination arrangements, and Tokenised RWA RFQ trades. Participants can choose Portus for atomic settlement with no counterparty risk on either leg, or settle through standard bilateral settlement. For Yield Coordination and Tokenised RWA RFQ trades, Portus is the recommended settlement path given the nature of those arrangements. Settlement is executed through Portus, independent collateral and settlement infrastructure. Both parties deliver their assets to Portus simultaneously. Portus secures both deliveries independently, verifies receipt on-chain, and completes the exchange in a single automatic event. Neither party is exposed to the other during settlement. Neither party nor Railr can access assets secured within Portus at any point.
For Yield Coordination, Portus secures the borrowing party's collateral throughout the arrangement. When Settlement Verification confirms the return transfer of inventory, Portus automatically releases collateral to the lending party. No manual step required.
For Tokenised RWA RFQ, the seller delivers the tokenised instrument and the buyer delivers the stablecoin payment to Portus simultaneously. When both deliveries are confirmed, Portus completes the exchange atomically. If the window expires without both deliveries, each party's asset is returned automatically.
Portus is independent infrastructure. It is not operated by Railr. Documentation and audit reports are available to verified participants on request. Contact legal@railr.io.
Reference System
Every settlement is uniquely identified.
A Settlement Reference ID is generated at the point of quote acceptance and tracks the settlement from instruction through to verified confirmation.
Settlement Reference ID
RLR–20260402–000847–9KRLRNetwork prefix
Identifies the Railr network
20260402Date
YYYYMMDD at execution
000847Sequence
Monotonic counter for the day
9KChecksum
2-char integrity check
Issued to both parties
Included in the settlement instruction at execution.
Primary tracking key
Used for all monitoring and confirmation activity.
Logged on both sides
Recorded in each participant's activity history.
Dispute reference
Referenced in any dispute resolution process.
Real-Time Settlement Dashboard
Every participant has access to a real-time settlement dashboard showing the full status of their network activity.
Live Settlement Queue
All pending settlements with reference ID, counterparty identifier, asset pair, notional, deadline, and current verification status.
Status Indicators
Live Settlement Queue
RLR-20260402-000847-9K
USDC/USDT · $10,000,000
0x4f2a…8c1d · 14:23:07 UTC
RLR-20260402-000848-3R
BTC/USDC · $4,200,000
4m 12s remaining
RLR-20260402-000849-7M
ETH/USDT · $2,100,000
28m remaining
Settlement History
Full exportable history of all settlement records including verification method, transaction hashes where applicable, and timestamps. Participants requiring records for their own regulatory or compliance obligations can export their full activity history at any time.
Settlement Performance
Your own settlement performance data including on-time rate, average settlement time, and confirmation method breakdown. LPs additionally see how their settlement performance feeds directly into their Liquidity Score.
Blockchains Monitored
Settlement Verification currently monitors the following chains for on-chain transaction matching.
Ethereum
Tron
Solana
XRP Ledger
Additional chains are added as network asset coverage expands.
LP Liquidity Score Integration
Settlement reliability is one of five dimensions in the LP Liquidity Score. With Settlement Verification live, this dimension is objective rather than inferred.
- On-chain verified settlement within the agreed window earns full score contribution.
- Bilaterally attested settlement within window earns high contribution.
- Late settlement within the grace period earns partial contribution.
- Unconfirmed settlement after the grace period earns zero contribution with a penalty applied.
This makes the settlement reliability dimension of the LP Liquidity Score the most objective and verifiable performance metric in institutional digital asset market making. Derived from verified settlement records, not self-reporting.
API Access
Settlement Verification is fully accessible via the Railr API for integrated participants.
/v1/settlementsReturns all settlement records for the authenticated participant
/v1/settlements/{reference_id}Returns the full settlement record for a specific reference ID
/v1/settlements/{reference_id}/confirmSubmits participant attestation confirmation. Requires execute scope.
/v1/settlements/{reference_id}/statusReturns current verification status. Suitable for polling.
Webhook Events
All webhooks are delivered with HMAC-SHA256 signature verification.
Dispute Resolution
When a settlement is disputed, both participants submit evidence through the platform. For on-chain settlements the blockchain record is definitive. For attested settlements, custodian documentation is requested. Railr issues a determination within two business days. Repeated disputed settlements from the same participant trigger enhanced monitoring and may result in access review.
Availability
Settlement Verification is available to all active Railr network participants. No separate application is required.
For participants using Yield Coordination or Tokenised RWA RFQ, Settlement Verification is already integrated into both product workflows through the Portus settlement path.
For questions about settlement infrastructure, dispute resolution, or compliance requirements contact legal@railr.io.
Settlement Verification is post-trade infrastructure for the Railr network. Railr does not hold, receive, transmit, or settle participant funds or assets at any point. Settlement occurs bilaterally between participants. Railr monitors and records settlement outcomes. All participant data is processed in accordance with Railr's Privacy Policy available at railr.io/privacy.