What Is Delivery versus Payment (DVP) and How Is It Applied in Digital Asset RFQ Trades?

Delivery Versus Payment (DVP) is a settlement mechanism ensuring that the delivery of the asset occurs only if the corresponding payment is made. In digital asset RFQ trades, this principle is crucial for minimizing settlement risk.

It is often implemented via segregated accounts or atomic settlement mechanisms. The transfer of the derivative or underlying asset and the transfer of payment are synchronized.