Solana Foundation launched Solana DvP, an open-source atomic settlement standard built with input from J.P. Morgan, as it pushes into institutional finance.
Key Facts
Solana Foundation launched Solana DvP on Monday, an open-source, MIT-licensed standard for atomic delivery-versus-payment settlement, developed with advisory input from J.P. Morgan.
The program settles both legs of a trade, the asset and the cash, in a single atomic transaction or not at all, replacing the bespoke smart contracts institutions previously built for each on-chain deal.
Solana DvP has passed external security audits and is usable with real funds, though no major bank has yet committed to settling live trades through it, Solana Foundation said.
Solana Foundation launched Solana DvP on Monday, an open-source settlement standard for the Solana (SOL) blockchain built with advisory input from J.P. Morgan, as the foundation pushes further into the institutional finance and tokenization business it has spent the past year courting.
Delivery-versus-payment (DvP) settlement ensures an asset and its payment move at the same moment, so neither side can pay without receiving, or deliver without being paid. Traditional markets handle this through a multi-day chain of clearinghouses and custodians. Solana DvP compresses it into one atomic transaction, with finality in seconds, Solana Foundation said.
How Solana DvP Works
The open-source escrow program, released under the MIT license, offers an API for atomic settlement, isolated escrow, and enforced deadlines, built on Solana's SPL Token standard and Token-2022, including extensions regulated issuers use, such as permanent delegate, pausable tokens, and transfer hooks. Any two counterparties can settle through it using any settlement agent, including a bank, custodian, or exchange.
"Atomic settlement removes counterparty risk that is inherent in traditional finance," said Catherine Gu, Solana Foundation's head of product for digital assets. J.P. Morgan's Rhodel D'souza, head of markets digital assets, said a shared open standard for DvP is "exactly the kind of foundational infrastructure institutional market participants require to operate at scale." J.P. Morgan's role was limited to advising on settlement practices and requirements; the bank did not build, operate, or endorse the program itself.
Where Solana Stands Against Ethereum
Solana Foundation described Solana's performance as that of "the leading venue for tokenized real-world assets" in its announcement, a claim that holds in specific niches rather than the market overall. Ethereum (ETH) still holds the largest share of tokenized real-world assets by total value, while Solana has built a stronger position in tokenized equities specifically, reaching a 19.3% share of that segment as of early September, up from 18.2% a year earlier, according to Nasdaq.
The release builds on a prior collaboration: J.P. Morgan arranged a US commercial paper issuance on Solana earlier this year through Galaxy Digital Holdings, creating the on-chain token and handling delivery-versus-payment settlement for that single deal. Solana DvP generalizes that approach into a reusable standard, though Solana Foundation said no major bank has yet committed to settling live trades through it, and the foundation is still recruiting design partners ahead of a full production release.
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