Atomic settlement, or delivery versus payment, means the transfer of the security and the transfer of the money occur in the same indivisible operation: either both happen or neither happens. It removes the delay that in traditional settlement lasts days and through which counterparty risk creeps in.
You are concerned about counterparty risk when settling a transaction with tokens. You sell a security token, deliver it, and payment does not arrive. Or the other way around: you pay and the security is not transferred. That lag between delivery and payment is the gap where risk slips in. In traditional securities settlement, that gap lasts two days. Atomic settlement closes it: delivery and payment happen at the same time or they do not happen. In this article you see what atomic DvP is (delivery versus payment, both legs at once), how it differs from T+2 (two-day settlement), what you need to use it, and what it means for you as an issuer in the Spanish framework.
What is atomic settlement
Atomic settlement executes token delivery and payment in a single indivisible transaction: either both legs are completed at once, or neither is completed. There is no moment when one party has delivered and the other has not yet paid.
The word “atomic” comes from the fact that the transaction cannot be split. It is one unit. In an on-chain transaction, delivery of the tokenized security and transfer of the payment method are programmed together. If either fails, the entire transaction is reverted. No one is left halfway.
This is delivery versus payment (DvP, Delivery versus Payment) taken to the technical extreme. DvP as a principle has existed for decades in post-trade: settle the security only if the payment settles. What changes with distributed ledger technology is that this link stops depending on intermediary processes and timelines, and becomes a condition that is met or not met in the same transaction.
What it means for you
You reduce the risk of the counterparty receiving without delivering. You do not depend on a third party guaranteeing the closing of both legs with days in between. The transaction closes completely or does not close.
T+2 versus atomic settlement
In the T+2 model, delivery of the security and payment are completed two business days after the trade. During those two days there is counterparty risk: one party may default before settlement closes. Atomic settlement eliminates that window because both legs occur at the same instant.
T+2 is not arbitrary. It is the result of a chain of intermediaries (depositories, clearing houses, settlement agents) that need time to match, clear, and confirm. It works, but it leaves a lag. During that lag, if a counterparty goes bankrupt or defaults, the other can be left exposed.
Atomic settlement compresses that process into one transaction. There is no lag because there are not two moments: there is one.
Comparison
| Aspect | T+2 (two-day settlement) | Atomic DvP (both legs at once) |
|---|---|---|
| Timing of delivery and payment | Two business days after the trade | Simultaneous, in the same transaction |
| Counterparty risk in settlement | Exists during the lag | Eliminated: either both legs or neither |
| Partial reversibility | One leg can be completed without the other | No: the operation is indivisible |
| Means of payment | Money in accounts, outside the security register | It must be on-chain to be linked to delivery |
| Intermediaries at closing | Chain of custodians and agents | The condition is met in the transaction itself |
The table does not say that T+2 is worse in everything. It says where the difference lies: in the risk window and in who guarantees the closing.
Why you need on-chain payment
For delivery and payment to be executed in the same indivisible operation, the means of payment must live in the same registry as the token. If the money is in a traditional bank account and the security is in a distributed registry, you cannot tie them together in a single atomic transaction.
Here is the point many overlook. Atomic settlement is not just a matter of tokenizing the security. You need the payment leg to also be programmable and live on-chain. If one leg is inside the registry and the other outside, you again have two moments and two systems to coordinate. The lag returns.
Which means of payment allow it
There are several routes. One is tokenized money, such as electronic money tokens (EMT, electronic money represented on-chain). Another is a payment mechanism integrated into the settlement infrastructure itself, linking the transfer of the security to that of cash. The European DLT Pilot Regime expressly provides that DLT settlement systems may operate with commercial bank money or with electronic money tokens when central bank money is not available (Regulation (EU) 2022/858).
What it means for you
Issuing the token is not enough. Before promising atomic settlement, check how the cash will enter the operation. If you do not have an on-chain payment leg, you have classic DvP, not atomic DvP.
What it implies for the issuer and post-trading
As an issuer, atomic settlement affects how transactions on your security are closed, but it does not replace the ownership registry or the Spanish regulatory framework. Ownership continues to be recorded through the channel provided by law, and atomic DvP is the settlement mechanics, not the registry.
It is worth not confusing two things. One is settling (closing the transaction: delivering the security against payment). Another is registering ownership (recording who owns the security). Atomic settlement works on the first. The registry follows its own channel.
The registry continues through ERIR
In the Spanish framework, the ownership registry of security tokens is kept by an entity responsible for registration and recording (ERIR, the digital notary of the registry). The ERIR manages the identification of holders and the corporate events that affect the issuance (art. 8 Ley 6/2023, LMVSI; RD 814/2023). As of 2026, Ursus-3 is the first registered ERIR. The fact that a transaction is settled atomically does not change who keeps that registry or how. If you want the detail, read what an ERIR is.
Where DLT settlement fits
The DLT Pilot Regime (Reg. EU 2022/858) creates a temporary framework for market infrastructures based on distributed registries, including DLT settlement systems that settle transactions against payment or against delivery. It is the European space where these settlement mechanics are tested under supervision. We cover it in the DLT Pilot Regime explained.
What it means for you
Atomic settlement improves how transactions on your security are closed. It does not exempt you from complying with the ERIR registry or the CNMV framework. Treat it as an improvement in post-trading, not as a regulatory shortcut.
What to do now
If you are considering atomic settlement for your issuance, organize the problem into three questions: how the on-chain payment enters, who keeps the ownership registry, and under what framework you operate. Solve those three and you will have a realistic picture, not a marketing promise.
Start by understanding the basics. If it is still not clear what tokenizing a security means, read what asset tokenization is. For the complete issuance process in Spain, with the role of the CNMV and the ERIR, review how to issue a security token in Spain. And if you come across acronyms you are not familiar with, you have the glossary at hand.
About the payment leg: ask your infrastructure provider how cash is linked to delivery of the token. If the answer does not include an on-chain means of payment, it is not atomic settlement.
Frequently asked questions
What is atomic settlement in security tokens?
It is the joint and indivisible execution of token delivery and payment in a single on-chain operation. Either both legs are completed at the same time, or neither is completed. Its goal is to eliminate the window in which one party has delivered and the other has not yet paid.
How does it differ from traditional T+2?
In T+2, delivery of the security and payment are completed two business days after the trade, and during that lag there is counterparty risk. In atomic settlement there is no lag: both legs occur at the same instant, within the same transaction.
Does atomic settlement reduce counterparty risk?
It reduces the risk associated with the gap between delivery and payment, because the two legs are indivisible. It does not eliminate all risks in a transaction (for example, operational risks or risks of the counterparty itself before settlement), but it does close the gap between delivering and getting paid.
Do I need tokenized money to settle atomically?
You need the payment leg to be on-chain, on the same ledger as the token. This can be achieved with tokenized money, such as electronic money tokens (EMT), or with a payment mechanism integrated into the settlement infrastructure. If the money is only in a traditional bank account, you cannot tie it to delivery in an atomic transaction.
Does atomic settlement replace ERIR registration?
No. Atomic settlement is the mechanics by which the trade is closed. The ownership record continues to be kept by an entity responsible for registration and record-keeping (ERIR), pursuant to art. 8 of Ley 6/2023 (LMVSI) and Real Decreto 814/2023. They are two different layers: settling and registering.
Where are these settlement systems tested in Europe?
The DLT Pilot Regime (Regulation (EU) 2022/858) creates a temporary framework for market infrastructures based on distributed ledgers, including DLT settlement systems that settle transactions against payment or against delivery, under the supervision of the competent authority.
Notice
Informational content. It does not constitute legal, tax or investment advice. HokenFi is a software and infrastructure provider; it does not provide regulated services. Check the current version of the rules cited in the BOE and EUR-Lex.
Cited regulations
- Ley 6/2023, de 17 de marzo, de los Mercados de Valores y de los Servicios de Inversión (LMVSI), art. 8 (registration of securities represented by systems based on distributed ledger technology and entities responsible for registration and record-keeping).
- Real Decreto 814/2023, de 8 de noviembre, por el que se desarrolla la Ley 6/2023 en materia de registros y régimen de las ERIR.
- Regulation (EU) 2022/858 of the European Parliament and of the Council of 30 May 2022 on a pilot regime for market infrastructures based on distributed ledger technology (DLT Pilot Regime), including DLT settlement systems.
