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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.

What Is Delivery versus Payment (DVP) and How Is It Applied to Crypto Derivatives?
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How Does the Concept of “Delivery versus Payment” (DvP) Relate to Atomic Settlement?
How Do Exchanges Ensure Fairness among Co-Located Clients?