What term describes a payment that is settled across a real-time gross settlement system and is linked to asset transfers?

The term that describes a payment settled across a real-time gross settlement (RTGS) system and linked to asset transfers is "synchronized settlement." In this context, synchronized settlement refers to the process where the transfer of funds and the transfer of assets occur simultaneously and instantaneously. This feature is crucial in ensuring that both the payment and the asset transfer are completed at the same time, thereby mitigating the risk that one leg of the transaction might occur without the other—a situation known as settlement risk.

Synchronized settlement is particularly important in financial markets where transactions involve the exchange of securities or other assets, as it enhances the efficiency and safety of financial transactions. The integration of these two processes in real-time ensures further confidence in trading and payment systems, which is a hallmark of modern financial infrastructure.

In contrast, deferred settlement refers to transactions that do not settle immediately but rather at a later time; instant payments typically refer to individual transactions that are processed immediately but may not involve asset transfers; and batch settlement involves grouping multiple transactions for processing at specific intervals rather than settling them immediately. These distinctions highlight why synchronized settlement is the correct answer in the context described in the question.