Delivery versus Payment, or DvP, is a settlement mechanism ensuring that the delivery of securities occurs only if payment is simultaneously made. This arrangement eliminates principal risk by preventing the loss of assets without receiving payment, or vice versa. It is a standard practice in traditional financial markets to protect both buyers and sellers. DvP is fundamental for maintaining integrity in securities transactions.
Context
The concept of DvP is highly pertinent to the tokenization of assets and the development of digital asset markets. Distributed ledger technology (DLT) platforms are designed to natively support atomic swaps, which replicate DvP functionality in a digital environment. News frequently discusses how DLT can streamline DvP processes for traditional assets, digital securities, and tokenized central bank money, thereby reducing settlement times and counterparty risk.
This expansion integrates DLT into core wholesale settlement infrastructure, radically reducing counterparty risk and optimizing capital efficiency across the Eurozone.
The $135M Series C accelerates the deployment of central bank-backed tokenized money, achieving instantaneous DvP and FX PvP settlement for superior capital efficiency.
The $135 million Series C accelerates the deployment of central bank-backed tokenized money for T+0 interbank settlement, mitigating systemic counterparty risk.
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