# Delivery versus Delivery (DvD) > Delivery versus Delivery (DvD) is a securities settlement mechanism that makes one security transfer conditional on the simultaneous delivery of another, reducing non-delivery and counterparty risk. - Canonical URL: https://iq.wiki/wiki/delivery-versus-delivery-dvd - Categories: Glossary - Created: 2026-11-10T12:37:00.831Z - Last updated: 2026-11-10T12:37:00.831Z - Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki) --- **Delivery versus Delivery (DvD)** is a securities settlement mechanism in which the transfer of one security is conditional on the corresponding transfer of another: both deliveries occur, or neither does. It is used to exchange securities for other securities rather than for cash, linking the two legs of a trade to reduce non-delivery and counterparty risk.[\[1\]](#cite-id-tzezg2g971)​[\[2\]](#cite-id-087150a32p)​[\[3\]](#cite-id-vd3in5p1d2)​ ## Role in Securities Settlement DvD is used for direct exchanges of securities, including in bond and equity markets, and is particularly common in repurchase-agreement (repo) markets. Modern DvD settlements are typically managed by automated systems operated by central securities depositories or clearinghouses.[\[2\]](#cite-id-087150a32p)​ DvD differs from **Delivery versus Payment (DvP)**, which conditions the delivery of securities on payment in cash. DvD instead links the delivery of two securities. Both mechanisms are designed to reduce settlement risk by making one party’s delivery conditional on the other party’s obligation being fulfilled.[\[2\]](#cite-id-087150a32p)​[\[3\]](#cite-id-vd3in5p1d2)​ ## Blockchain-Based Settlement In a blockchain-based DvD transaction, a [smart contract](https://iq.wiki/wiki/smart-contract) can make settlement conditional on both parties meeting the agreed requirements. The contract executes the exchange when the required conditions are met, so the transfer does not proceed if one leg fails. [Blockchain](https://iq.wiki/wiki/blockchain) systems can also provide transaction records that parties can verify and that are designed to resist alteration.[\[2\]](#cite-id-087150a32p)​ DvD is one form of atomic cross-chain exchange, in which both sides of a trade must succeed or neither does. For example, an institution could exchange a tokenized Treasury bond on one blockchain for a tokenized corporate bond on another, without a currency leg.[\[3\]](#cite-id-vd3in5p1d2) Cross-chain execution depends on interoperability between the networks involved. [Chainlink](https://iq.wiki/wiki/chainlink)’s educational discussion identifies its Cross-Chain Interoperability Protocol (CCIP) as infrastructure for moving messages and tokens between chains, and its Chainlink Runtime Environment (CRE) as an orchestration layer for complex cross-chain workflows; it does not describe a specific DvD implementation.[\[3\]](#cite-id-vd3in5p1d2)​ Blockchain-based settlement may enable faster transfers, reduce reliance on intermediaries, and lower transaction costs. Faster settlement could improve liquidity and operational efficiency, including for enterprises engaged in international trade.[\[2\]](#cite-id-087150a32p) Implementation can require substantial technical expertise and investment, and faces challenges involving scalability, interoperability, integration with existing financial infrastructure, and compliance with local and international regulations.[\[2\]](#cite-id-087150a32p)​ ## DvD Offers for Permissioned Tokens Tokeny describes a DvD application for permissioned [digital assets](https://iq.wiki/wiki/digital-assets) through its DINO liquidity protocol, which it presents as a distributed marketplace where distributors can transact without sharing their clients. Investors can publish on-chain DvD offers directly or through distribution platforms. The offers become visible across participating platforms, and a buyer can accept one either on the platform where it originated or on another participating platform.[\[4\]](#cite-id-te6vee6u3t)​ When an offer is accepted, a DvD [smart contract](https://iq.wiki/wiki/smart-contract) checks the buyer’s on-chain identity and eligibility, enforces transfer restrictions and other compliance conditions, and verifies that the buyer’s wallet has sufficient funds. If the checks pass, the transaction settles on-chain. Tokeny presents this process as automating settlement without intermediaries or counterparty risk.[\[4\]](#cite-id-te6vee6u3t)​ DINO is presented as composable with ERC-3643, an open-source standard built on [ERC-20](https://iq.wiki/wiki/erc-20) for issuing, managing, and distributing permissioned tokens. ERC-3643 provides token-level transfer restrictions and identity-based validation; its standardized compliance layer is intended to support compliant interoperability across the [Ethereum Virtual Machine (EVM)](https://iq.wiki/wiki/ethereum-virtual-machine-evm) ecosystem. Tokeny describes DINO as an additional smart-contract functionality that can be combined with the standard.[\[4\]](#cite-id-te6vee6u3t)​ The shared order book is intended to address fragmented liquidity in tokenized real-world-asset and securities markets, where isolated distribution platforms can restrict offers to their own investor bases. Tokeny says cross-platform offers can give investors access to a wider pool while allowing them to remain on their distributor’s platform, let distributors reach a larger market while retaining their investor relationships, and increase the activity and visibility of issuers’ assets.[\[4\]](#cite-id-te6vee6u3t)​