How Does the Use of Stablecoins Facilitate DVP in Cryptocurrency Derivatives?

Stablecoins, being digital representations of fiat currency, allow for near-instantaneous and final settlement on a blockchain. This eliminates the multi-day settlement cycles of traditional banking.

By using stablecoins for the payment leg, the DVP principle can be enforced atomically or near-atomically, as both the derivative asset and the payment can be transferred on-chain simultaneously, greatly reducing settlement time and risk.