The ERC3643 Association Announces Cross-Chain DvP Solutions for RWAs with LayerZero, Tokeny, Fasanara, and ABN AMRO
By Dominic Sow · 1 May 2025
Selected members of the ERC3643 association, together with Tokeny, LayerZero, Fasanara Capital, and ABN AMRO, have launched a cross-chain Delivery-vs-Payment (DvP) solution for regulated tokenized assets. The solution enables atomic settlement between ERC-3643-based security tokens and cash-equivalent tokens across the Polygon and Base networks.
Initiated within the non-profit ERC3643 Association, the solution demonstrates how on-chain securities and cash-equivalent tokens can be securely settled across two blockchains, without requiring counterparties to bridge assets across chains. This removes a major friction point and addresses the institutional need to operate the cash and security legs on separate networks.
The system showcases a concrete and real-time proof of concept use case: Fasanara issued ERC-3643-based security tokens on Polygon using Tokeny’s onchain finance platform, while ABN AMRO issued cash tokens on Base. A decentralized application (dApp), developed by Labrys, orchestrates the cross-chain DvP process using LayerZero’s messaging infrastructure.
This use case demonstrated that the ERC-3643-based security tokens and payment tokens can be exchanged across chains with real-time settlement.
How Cross-Chain DvP Works
- Create DvP Agreement: The seller creates a DvP position specifying the tokens to lock, the tokens to receive, and the buyer’s address.
- Lock Assets: The seller locks their specified tokens in the escrow contract on the source chain.
- Cross-Chain Notification: LayerZero relays the DvP details to the destination chain, notifying the buyer.
- Payment: The buyer pays the agreed amount on the destination chain to fulfill their part of the agreement.
- Release Assets: Upon payment confirmation, the locked assets are automatically released to the buyer, completing the swap.
Solving a Critical Industry Bottleneck
As asset tokenization gains traction, institutions face a major challenge: having the cash leg onchain. Most current processes rely on traditional payment rails, resulting in long settlement cycles, high operational costs, and increased counterparty risk.
To meet privacy requirements, some institutions prefer using payment tokens on private blockchains. This initiative demonstrates how DvP settlements can take place across two separate chains, enabling the asset and cash legs to operate independently while settling atomically, without any counterparty risk.
This lock-and-release mechanism ensures settlement is secure, synchronized, and risk-free.
Luc Falempin, CEO of Tokeny says: “Institutions want to go onchain but need flexibility, control, and compliance. This project proves they can issue securities and trade them compliantly, with instant settlement, regardless of the underlying blockchain infrastructure. We’re proud to work with LayerZero, Fasanara, and ABN AMRO to deliver this real-world application.”
Bryan Pellegrino, Co-founder of LayerZero says: “This is exactly the kind of use case LayerZero was built for. Bringing financial infrastructure onto crypto rails, connecting it across chains, and enabling secure applications. This project shows how cross-chain messaging can support regulated finance by combining identity, compliance, and atomic settlement, while improving capital efficiency and settlement performance across the system.”
David Vatchev, Head of Tokenization of Fasanara Capital says: “As an asset manager focused on innovation, we see tokenization as the future of finance. With Tokeny’s compliance infrastructure and this cross-chain setup with LayerZero and ABN AMRO, we can issue fully regulated digital securities and enable a near‑real‑time settlement experience, even when the security leg and cash leg are on different blockchains.”
Martijn Siebrand, Digital Assets Program Manager at ABN AMRO says: “This project demonstrates the real-world potential of blockchain in regulated markets. Issuing cash tokens onchain and settling instantly with digital securities is a big step forward, and we’re excited to help shape this future.” Companies in this story: ABN AMRO, LayerZero Labs, Fasanara Capital
People in this story: David Vatchev, Bryan Pellegrino, Martijn Siebrand, Luc Falempin