DVP (Delivery versus Payment)

Delivery versus Payment (DVP) is the settlement mechanism where the transfer of a security and its corresponding payment occur simultaneously and atomically — neither leg settles unless both do. In tokenized markets, smart contracts enforce atomic DVP on-chain, eliminating the counterparty risk inherent in T+1 or T+2 settlement cycles. CPMI/IOSCO Principle 12 mandates DVP for all systemically important FMIs.

Canonical site: AtomicDVP.com Cross-references: StableCCP.com, StableCSD.com, SettlementRails.com