Solana Foundation has launched Solana DvP, an open-source settlement program for financial institutions.
Solana DvP is an escrow program that provides financial institutions with an open-source API for delivery-versus-payment (DvP) settlement on the Solana blockchain. Solana Foundation, a Switzerland-based non-profit focused on the decentralisation, growth, and security of Solana, has released the code under the MIT licence. The foundation presents it as a reusable standard designed to bring the settlement certainty banks and other financial institutions require to public blockchain infrastructure. The program settles transactions atomically, keeps escrowed assets isolated, and enforces deadlines.
According to Solana Foundation, institutional trades settled onchain have so far tended to rely on custom-built smart contracts. Solana DvP is intended to replace these individual arrangements with a single, shared settlement rail across the Solana ecosystem.
Compressing the settlement cycle
DvP underpins securities settlement by ensuring that the asset and the cash change hands simultaneously, removing principal risk. In traditional markets, this is achieved through a sequence of clearinghouses, depositories, and custodians, with capital typically tied up for one to two days. Solana DvP aims to condense this process into a single atomic transaction in which both legs settle together, or neither settles, with finality reached in seconds.
Catherine Gu, Head of Product, Digital Assets at Solana Foundation, said atomic settlement removes the counterparty risk inherent in traditional finance, adding that the program gives institutions one open standard across the Solana ecosystem on public infrastructure.
The launch ties into Solana Foundation's broader positioning of the network as a venue for tokenised real-world assets and internet capital markets. By offering a common settlement standard in place of bespoke contracts, the program targets a core operational requirement for institutions moving securities settlement onchain: certainty that both sides of a trade complete at the same time.
Token support and the role of J.P. Morgan
The program supports the SPL Token and Token-2022 standards, including extensions that regulated issuers depend on, such as permanent delegate, pausable tokens, and transfer hooks. Any two counterparties can use it with a settlement agent of their choice, whether a bank, a custodian, or an exchange.
J.P. Morgan provided input on institutional settlement practices and requirements, that Solana Foundation states helped shape the program to meet institutional needs from launch. With that in mind, J.P. Morgan did not design, develop, operate, approve, certify, or endorse Solana DvP.
Solana DvP has completed external security audits and, according to the foundation, is ready for use with real funds. Solana Foundation plans to add privacy capabilities so that trade settlements can be kept confidential.
