What Is Delivery versus Payment (DVP) and How Is It Achieved in Crypto Markets?
Delivery Versus Payment (DVP) is a settlement mechanism ensuring that the transfer of assets (Delivery) only occurs if the corresponding payment (Payment) also occurs. It eliminates principal risk.
In traditional finance, this is handled by settlement systems. In crypto markets, DVP is often achieved through smart contracts on-chain, using atomic swaps, or via trusted third-party escrow services and specialized DVP custodians.