Linking Cash and Securities For Delivery vs Payment Settlement in Distributed Ledger Arrangements

In this paper, the authors aim to explain some of the benefits of DLT migration and the challenges that need to be overcome during the transition. Futhermore, showing how existing securities and cash can be moved into DLT arrangements for delivery versus payment (DVP) transaction settlement. DVP is a fundamental requirement as it eliminates the principal risk that either counterparty to a trade or financing transaction could lose the full value of cash or securities while either leg of the trade or transaction remains unsettled.