DVP (Delivery Versus Payment) Definition
Delivery Versus Payment (DVP) is a settlement mechanism in financial markets that ensures the simultaneous exchange of securities and funds, thereby eliminating
Delivery Versus Payment (DVP) is a settlement mechanism in financial markets that ensures the simultaneous exchange of securities and funds, thereby eliminating the principal risk for both the buyer and the seller in a transaction. This critical process guarantees that the delivery of a security, such as a Treasury bond or a tokenized Real World Asset (RWA), occurs only if the corresponding payment is made, and vice versa, significantly enhancing market safety and efficiency.