Eliminating Herstatt Risk in Cross-Border Foreign Exchange via Atomic Settlement

Core engineering and protocols for Atomic DvP / PvP Settlement.

Eliminating Principal and Counterparty Settlement Risk

In cross-border foreign exchange, 'Herstatt risk' occurs when one bank fulfills its side of a trade during European banking hours, but the counterparty defaults before American markets open hours later. WCBDCVault eliminates this counterparty risk through atomic Payment-versus-Payment (PvP) execution: currency A transfers if and only if currency B transfers simultaneously.

Tokenized Asset Integration (Delivery-versus-Payment)

When institutional participants settle tokenized government bonds or commercial paper, WCBDCVault coordinates Delivery-versus-Payment (DvP). The asset token transfer and the central bank digital currency payment execute as a single atomic ledger transaction, eliminating middle-office reconciliation and multi-day settlement delays.

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