Definition
Delivery versus payment is a settlement model where the transfer of an asset and the transfer of payment for that asset occur simultaneously, such that neither counterparty is exposed to the risk of having delivered without receiving. DvP is the traditional gold-standard settlement mechanism in securities markets. In digital assets, DvP is implemented through atomic settlement rails on blockchain infrastructure, where a smart contract or settlement protocol enforces simultaneous transfer of both legs of the trade.
Example
An institutional buyer and seller agree to trade 1,000 tokens for $5 million. A DvP settlement protocol executes both legs simultaneously: the tokens transfer to the buyer and the cash transfers to the seller in the same atomic transaction, with neither side bearing delivery risk.
How Liquid Mercury Handles This
Mercury RWA integrates with DvP-capable settlement rails across tokenized security venues and regulated custodians, so institutional settlement can occur under DvP guarantees rather than relying on bilateral trust.