The Solana Foundation has launched Solana’s Delivery-versus-Payment (DvP), a new open-source settlement tool for financial institutions. It allows tokenized assets and payments to settle together in one blockchain transaction, cutting settlement times from days to seconds.
Developed with input from J.P. Morgan, the tool also aims to reduce the risk of one side paying without receiving assets.
Solana DvP Brings a Shared Settlement Standard
Until now, firms have often used custom smart contracts for each trade. Payments and assets can also move through clearinghouses, depositories, and custodians, which can take one to two days.
Meanwhile, this creates a risk that one side completes the trade while the other side does not.
Therefore, the Solana Foundation launched Solana DvP, which uses an atomic transaction. The payment and asset transfer happen at the same time. If one side fails, neither side settles.
Catherine Gu, head of Product, Digital Assets at the Solana Foundation, said, “Atomic settlement removes counterparty risk that is inherent in traditional finance.”
This is designed to reduce counterparty exposure while providing finality in seconds rather than days.
J.P. Morgan Provides Settlement Expertise
The program was developed with input from J.P. Morgan, which provided input on traditional securities settlement practices. Its role is advisory, rather than operational.
Rhodel D’Souza, head of Markets Digital Assets at J.P. Morgan, said a shared open standard is the type of infrastructure institutions need,
“to operate at scale without introducing settlement risk and counterparty exposure.”
However, DvP is released under the MIT open-source license, has been externally audited, and can work with any settlement agent.
Token-2022 Adds Institutional Controls
The framework also supports Solana’s Token-2022 standard, including features designed for regulated assets.
These include pausable tokens, which can allow transfers to be stopped during an emergency, and transfer hooks, which provide programmatic controls over how assets move.
The system can also be used by counterparties working with different settlement agents, including exchanges, custodians and commercial banks.
Solana Targets Production Use Next
Solana said the DvP code has completed external security audits and is ready for use with real funds. The foundation is now looking for design partners before wider production use.
It is also working on privacy features that could allow institutional settlements to remain confidential, addressing another requirement for broader financial-market adoption.