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

DvP is the principle; atomic settlement is the technological implementation on a blockchain, ensuring simultaneous exchange to eliminate principal risk.
Greeks.Live08.11.25

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

Delivery Versus Payment (DvP) is a settlement mechanism where the transfer of securities (delivery) occurs only if the corresponding transfer of funds (payment) occurs simultaneously. Atomic settlement is the blockchain's technological implementation of DvP.

A smart contract ensures that the two legs of the transaction ▴ the derivative asset and the payment ▴ are exchanged as a single, indivisible operation. This eliminates principal risk, which is the risk of losing the full value of the asset or payment.

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