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Delivery Versus Payment: How Tokenized Securities Settle

The BIS defines Delivery versus Payment (DvP) as a process where delivery occurs only if payment occurs, and the article describes how atomic DvP works for tokenised securities, including models, examples, and risks.

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What happened

The BIS defines Delivery versus Payment (DvP) as a process where delivery occurs only if payment occurs, and the article describes how atomic DvP works for tokenised securities, including models, examples, and risks.

Confirmed

Global impact / market context

Understanding DvP for tokenised securities shows investors how settlement risk is lowered, making digital assets safer and potentially drawing more capital into the market.

Analyst inference

The article explains that tokenised securities can settle using Delivery versus Payment (DvP), a method that only transfers securities when payment is received, which may change how digital assets are traded.

Analyst inference

What to watch

  1. Watch for regulatory guidance on tokenised securities settlement standards, as new rules could change compliance requirements for firms that handle digital assets and affect market participation. Analyst inference
  2. Monitor adoption of atomic DvP technology by exchanges and custodians, because wider use may improve settlement speed, cut counter‑party risk, and lower operational costs. Analyst inference
  3. Track improvements in blockchain infrastructure— the underlying technology that records transactions— since faster, cheaper networks could boost liquidity and reduce costs for tokenised securities. Analyst inference

Evidence