Abstract: Traditional banking transaction settlement systems rely on centralized infrastructures that often involve intermediaries, delayed settlement processes, high transaction fees, and vulnerability to fraud. The increasing demand for secure, transparent, and real-time financial settlements has led to the adoption of Blockchain technology in banking systems. This paper proposes a Blockchain-Based Transaction Settlement System designed to enable secure, transparent, and tamper-proof financial transactions between banking entities. The system uses distributed ledger technology and cryptographic hashing to validate and record transactions across a decentralized network. Smart contracts are used to automate settlement processes and eliminate intermediaries. The proposed system enhances security, reduces transaction time, minimizes operational costs, and ensures data integrity in financial transactions.

Keywords: Blockchain, Transaction Settlement, Banking System, Distributed Ledger, Smart Contracts, Financial Security, Decentralized System

Downloads: | DOI: 10.17148/IARJSET.2026.13246