How Do Centralized Exchanges Offer DVP for Spot Crypto Trades? ⎊ Path

How Do Centralized Exchanges Offer DVP for Spot Crypto Trades?

Centralized exchanges achieve DVP by acting as the trusted intermediary and custodian. They hold the assets of both the buyer and the seller in their internal ledger.

When a trade matches, the exchange instantly updates the balances on its ledger, ensuring the buyer receives the crypto and the seller receives the fiat/crypto payment simultaneously, all within the exchange's closed system.

How Does the Concept of ‘Trustless’ Exchange Relate to OTC DVP in Crypto?

How Does a Storage Variable Update Relate to the “Effects” Stage of the CEI Pattern?

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

What Is Delivery versus Payment (DVP) and How Is It Applied in Digital Asset RFQ Trades?

Define the Role of a “Trusted Third-Party Settlement Network” in Crypto Derivatives

How Does a Delivery versus Payment (DVP) System Mitigate Settlement Risk?

Why Is Updating State before an External Call the Critical Part of the CEI Pattern?

How Does the Concept of “Delivery versus Payment” (DvP) Relate to Atomic Settlement?

Glossar

DvP

Settlement ⎊ DvP, or Delivery versus Payment, within cryptocurrency and financial derivatives signifies the simultaneous exchange of assets, mitigating principal risk inherent in over-the-counter transactions and increasingly, on-chain settlements.