In StablecoinBeat usage, on-chain settlement is the point at which a blockchain or distributed ledger reflects a stablecoin transfer as technically settled under that system's rules.
CPMI-IOSCO describes technical settlement as the point at which an electronic ledger reflects that a transaction has occurred and is irrevocable from a technical standpoint. The exact point depends on the network's consensus design. Some systems provide deterministic technical finality, while others provide probabilistic settlement in which confidence against reversal increases as additional blocks or confirmations accumulate. Technical settlement on a blockchain does not by itself establish legal finality for the associated payment.
Ledger inclusion can occur before technical settlement. Legal finality is determined by the applicable system rules and legal framework and can diverge from the ledger's technical state.
Stablecoin payment systems inherit the settlement properties of their underlying networks, including reversal risk and the possibility of misalignment between technical settlement and legal finality.
A stablecoin transfer recorded on a public blockchain can be technically settled under that network's rules even though the legal finality of the associated payment depends on the governing legal framework.