Solana Debuts Institutional Settlement Standard With J.P. Morgan Input

The Solana Foundation introduced Solana DvP, an open-source escrow program designed to standardize delivery-versus-payment (DvP) settlement for financial institutions on Solana. Released under the permissive MIT license, the program provides a common API intended to replace bespoke smart contracts with a reusable settlement standard that guarantees both the asset and payment legs of a trade settle together or not at all.

The foundation said J.P. Morgan advised on institutional settlement practices that shaped the design. Foundation head of product for digital assets Catherine Gu described atomic settlement as a way to eliminate counterparty risk present in traditional finance and said the program delivers finality in seconds rather than the multi-day timelines typical of clearinghouse and custodian chains. J.P. Morgan’s head of markets digital assets, Rhodel D'souza, called a shared, open standard for atomic DvP the kind of infrastructure institutional participants require.

Solana DvP supports existing token standards used by regulated issuers, including SPL Token and Token-2022, and implements extensions such as permanent delegates, pausable tokens and transfer hooks. The foundation noted the program has undergone external security audits and intends to add privacy features to allow confidential settlements.

The launch builds on Solana’s recent traction with tokenized real-world assets. The foundation pointed to examples including BlackRock’s tokenized money market fund that records ownership on Solana and Kraken’s use of Solana to offer tokenized U.S. stocks to overseas customers. Infrastructure like Solana DvP is presented as a step to deepen the network’s use for regulated on-chain settlement by giving market participants a standardized, auditable method for atomic settlement.