TLDR The Solana Foundation launched Solana DvP, an open-source program for institutional trade settlement. J.P. Morgan gave input on settlement practices that shaped the program’s design. The
The Solana Foundation has launched a new open-source program to help banks and other financial institutions settle trades on the Solana blockchain. The tool is called Solana DvP.
The foundation announced the program on Monday. It was built with input from J.P. Morgan on how institutions handle settlement.
DvP stands for delivery-versus-payment. It is a basic process in finance that makes sure an asset and its payment change hands at the same time.
Solana DvP is an escrow program that gives institutions a standard API for this type of settlement. It is released under the MIT license, which allows wide use.
Institutional trades on blockchains have often relied on custom smart contracts. The foundation aims to replace that with a reusable standard on public blockchain infrastructure.
In traditional markets, delivery-versus-payment runs through clearinghouses, depositories and custodians. This process can take several days and can tie up capital for a day or two.
Solana DvP combines that process into one atomic transaction. Both the asset and the payment settle together, or neither one does.
The program supports SPL Token and Token-2022. This includes features regulated issuers use, such as permanent delegate, pausable tokens and transfer hooks.
The program has gone through outside security audits. The foundation said it plans to add privacy features so settlements can stay confidential.
“Atomic settlement removes counterparty risk that is inherent in traditional finance,” said Catherine Gu, the foundation’s head of product for digital assets. She said the program gives institutions a single open standard “with finality in seconds instead of days.”
Rhodel D’souza, J.P. Morgan’s head of markets digital assets, also commented on the launch. He said a shared, open standard for atomic delivery-versus-payment is “exactly the kind of foundational infrastructure institutional market participants require.”
The launch follows other moves by large firms to use Solana for tokenized real-world assets. These are traditional assets, like funds or stocks, recorded on a blockchain.
In August, BlackRock launched a tokenized money market fund for stablecoin reserves. The fund records ownership on Solana and Ethereum and is structured to qualify as a reserve asset under the GENIUS Act.
Kraken has used Solana to offer tokenized U.S. stocks to customers outside the country. It does this through its xStocks product.
Solana has become a leading network for tokenized equities. The DvP program is meant to give regulated firms a trusted way to settle trades on-chain.
Solana’s native token traded at about $120.25 on Tuesday. That was up 0.71% over the previous 24 hours.
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