Solana Foundation launches open-source DvP settlement program with J.P. Morgan input
In brief
- Solana Foundation on Monday announced Solana DvP, an open-source escrow program for institutional settlement.
- J.P. Morgan provided input on settlement practices that shaped the design, the foundation said.
- Both trade legs settle in one atomic transaction, or neither does.
- SPL Token and Token-2022 are supported, and the program has undergone external security audits, the foundation says.
What delivery-versus-payment does
Delivery-versus-payment is the mechanism that makes sure an asset and its payment change hands at the same time. It's old plumbing. In conventional markets, DvP runs through a multi-day chain of clearinghouses, depositories and custodians, and that process can tie up capital for a day or two.
Solana DvP handles settlement in a single atomic transaction (both legs settle together, or neither does). It's been released under the MIT license, and the foundation says it's meant to work as a reusable standard rather than the custom smart contracts institutional trades have typically relied on.
Neither leg moves alone.
"Atomic settlement removes counterparty risk that is inherent in traditional finance," said Catherine Gu, the foundation's head of product for digital assets
Gu added that the program offers institutions a single open standard "with finality in seconds instead of days." Those are her words; the foundation hasn't published settlement data alongside them, at least not in Decrypt's report.
Token support, audits and J.P. Morgan's role
According to the foundation, the program supports SPL Token and Token-2022, including extensions regulated issuers use such as permanent delegate, pausable tokens and transfer hooks. It has undergone external security audits. The foundation also said it plans to add privacy features so settlements can be kept confidential.
J.P. Morgan's involvement, as the foundation described it, was input on settlement practices. Rhodel D'souza, J.P. Morgan's head of markets digital assets, said a shared, open standard for atomic delivery-versus-payment is "exactly the kind of foundational infrastructure institutional market participants require."
Background: Solana and tokenized assets
Decrypt reported that the launch builds on Solana's growing pull among institutions chasing tokenized real-world assets. BlackRock launched a tokenized money market fund for stablecoin reserves in August that records ownership on Solana and Ethereum, and it's structured to qualify as a reserve asset under the GENIUS Act.
Kraken, meanwhile, has used Solana to offer tokenized U.S. stocks to overseas customers through its xStocks product, and Decrypt described the network as a leading venue for tokenized equities. The outlet cited both as context for the launch. It didn't say either one uses Solana DvP.
Frequently asked questions
What is Solana DvP?
Solana DvP is an open-source escrow program from the Solana Foundation, released under the MIT license. It gives financial institutions a standardized API for delivery-versus-payment settlement on Solana, and the foundation says it's meant to serve as a reusable standard instead of custom smart contracts.
How does Solana DvP settle a trade?
The program settles a trade in a single atomic transaction, so both legs settle together or neither does. In conventional markets, delivery-versus-payment runs through a multi-day chain of clearinghouses, depositories and custodians that can tie up capital for a day or two.
What role did J.P. Morgan play in Solana DvP?
The Solana Foundation said J.P. Morgan provided input on institutional settlement practices that shaped the program's design. Rhodel D'souza, J.P. Morgan's head of markets digital assets, said a shared, open standard for atomic delivery-versus-payment is the kind of infrastructure institutional market participants require.
