How Does a Settlement Network Achieve “Atomic Settlement”?

Atomic settlement is achieved by ensuring that all components of a transaction, delivery of asset and payment, occur simultaneously or fail entirely. The network's off-chain ledger records the transfer of both legs, and the system guarantees that the finality of the transfer is either complete for both or incomplete for both, eliminating principal risk.

Can a Smart Contract Eliminate Counterparty Risk Entirely, or Does It Just Transform It?
How Does the Concept of ‘PVP’ (Payment versus Payment) Apply to FX Derivatives?
How Does the Concept of “Delivery versus Payment” (DvP) Relate to Atomic Settlement?
What Is Delivery versus Payment (DVP) and How Is It Achieved in Crypto Markets?
What Is “Atomic Settlement” and Why Is It Important for Smart Contract Derivatives?
Define ‘Atomic Settlement’ and Its Importance in Reducing Risk
How Does the Concept of ‘Settlement Risk’ in Derivatives Compare to Finality Risk in PoW?
How Does the Bid-Ask Spread Reflect the Risk Taken by a Principal Desk?

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