TLDR
- Solana Foundation launched an open-source DvP program that settles assets and payments together within seconds.
- The system uses atomic settlement, meaning both sides of a trade complete at once or the transaction fails.
- JPMorgan contributed settlement expertise, including requirements for escrow, deadlines, and regulated token features.
- The program could reduce the need for institutions to build separate smart contracts for each on-chain trade.
- Solana Foundation says the DvP program has passed external security audits, with privacy features planned for future releases.
The Solana Foundation launched Solana DvP on Oct. 6, an open-source program that reduces settlement risk for institutional trades. The system allows an asset and its payment to settle together on Solana within a few seconds. If either side fails, the transaction stops.
Solana Foundation Introduces One Settlement Standard
Trade settlement can take one or two days because cash and assets move through several firms. Solana DvP combines both sides into one transaction, reducing the chance that one party receives value while the other side fails to deliver.
The program also gives institutions a common system instead of requiring custom smart contracts for each deal. Interest in faster settlement is growing across finance. A recent report on UK banks and tokenization found that many financial firms now view faster payments and settlement as a key institutional use case.
JPMorgan Helps Shape Institutional Requirements
JPMorgan contributed settlement experience during development. Its input helped shape rules for deadlines, escrow separation, and regulated token features. These include pausable tokens, which allow authorized administrators to stop transfers when required.
The bank has also tested other blockchain settlement models. Solana has taken part in institutional tokenization deals, including a commercial paper transaction for Galaxy Digital that settled in USDC. These projects show how financial firms continue testing public and permissioned blockchain systems.
Tokenized Assets Gain New Settlement Tools
The new program arrives as digital asset settlement expands beyond crypto trading. An Open USD stablecoin launch this week added another payment asset across Solana, Ethereum, Base, and Tempo, with more than $1 billion in liquidity commitments.
Solana DvP uses public infrastructure and an open standard. The Foundation says outside security firms audited the program before release. The design supports Token-2022 tools such as transfer controls and other features that regulated issuers may require.
Privacy Remains Part of the Roadmap
The Solana Foundation plans to add privacy tools so institutions can keep settlement details confidential. This goal matches wider work across Solana, where recent network upgrade progress has also focused on faster transaction finality and higher performance.
Other firms already use delivery-versus-payment models. JPMorgan’s Kinexys tested a cross-chain DvP transaction with Ondo Finance, while ClearToken introduced a permissioned version on Canton Network. Solana’s approach adds an open-source option for institutions seeking faster settlement on public blockchain infrastructure.
