Delivery versus Payment

Definition ∞ 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.

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→On-Chain Assets

→Capital Markets DLT

→Private Blockchain

Societe Generale Issues First US Digital Bond on Canton Network

Tokenization of SOFR-linked bonds on-chain streamlines securities issuance and enables instantaneous settlement within the regulated US capital markets framework.

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→European DLT Trials

→Institutional Digital Assets

→Capital Markets Efficiency

Clearstream and German Banks Tokenize Bonds Using Central Bank Digital Cash

German financial institutions piloted DLT-based bond issuance and T+0 settlement using digital central bank money to validate capital market efficiency gains.

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→Foreign Exchange

→Real-Time Gross Settlement

→Wholesale Payments

Central Banks Pilot DLT for Atomic Cross-Border Foreign Exchange Settlement

This multi-jurisdictional DLT integration establishes a synchronized FX settlement layer, mitigating counterparty risk and achieving capital efficiency for global treasury operations.

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→Regulated Trading Venue

→Tokenized Corporate Debt

→Financial Market Infrastructure

Siemens Issues €300 Million Tokenized Bond, Enabling Secondary Market Trading

Tokenizing core treasury issuance on DLT streamlines capital formation, reducing settlement risk and unlocking crucial secondary market liquidity for corporate debt.

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→Systemic Risk Reduction

→Digital Securities

→Regulated Financial Market

Fnality Launches World’s First Regulated DLT-Based Wholesale Sterling Payment System

The system tokenizes central bank funds for instant, risk-free atomic settlement, optimizing intraday liquidity and unlocking digital asset market utility.

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→Digital Asset Standards

→Cross-Border Payments

→Regulatory Sandbox

Central Banks Partner on DLT Framework to Standardize Cross-Border Settlement

MAS and Bundesbank are establishing a DLT interoperability standard to minimize Herstatt risk and achieve capital-efficient, instantaneous cross-border settlement.

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→Cross-Border Payments

→Financial Market Infrastructure

→Cross-Chain Interoperability

Financial Giants Adopt Chainlink Runtime for Global Tokenized Asset Orchestration

CRE provides the necessary compliance and interoperability layer, enabling cross-chain DvP settlement to unlock trillions in illiquid capital and achieve T+0 finality.

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→Financial Market Infrastructure

→Enterprise DLT

→Delivery versus Payment

J.P. Morgan and Ondo Execute First Cross-Chain DvP Settlement

Orchestration layer programmatically links private bank chains with public digital assets, reducing counterparty risk and friction in cross-market collateral mobility.

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→Regulated Finance

→Atomic Settlement

→Asset Tokenization

JPMorgan Executes First Public Tokenized Treasury Settlement Using Ondo and Chainlink

This atomic DvP settlement validates the institutional use-case for RWA primitives and public cross-chain interoperability infrastructure.

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→Financial Innovation

→On-Chain Settlement

→Regulated Exchange

Swiss Exchange Launches Regulated DLT Facility for Near-Instant Securities Settlement

A FINMA-licensed DLT trading facility leverages blockchain and central bank integration to compress securities settlement from T+2 to 30 minutes, drastically improving capital efficiency.