Skip to main content

How Do Blockchain-Based Ledgers Fundamentally Address non-DVP Risk?

Blockchain ledgers enable the transfer of both the asset and the payment to be recorded in the same atomic transaction or within the same block, ensuring cryptographic finality. This inherent synchronization eliminates the time lag between the two legs of the trade, which is the root cause of non-DVP risk.

The ledger itself enforces the simultaneous exchange (DVP).

What Is Delivery versus Payment (DVP) and How Is It Applied in Digital Asset RFQ Trades?
What Is “Atomic Settlement” and Why Is It Important for Smart Contract Derivatives?
How Does the Concept of ‘PVP’ (Payment versus Payment) Apply to FX Derivatives?
How Does the Use of Stablecoins Facilitate DVP in Cryptocurrency Derivatives?