Solana Foundation Launches JPMorgan-Backed DvP Settlement Standard

The Solana Foundation has introduced Solana DvP, an open-source standard for atomic delivery-versus-payment (DvP) settlement on the Solana blockchain. Developed with advisory input from J.P. Morgan, the program ensures that asset and cash legs of a trade settle simultaneously in a single atomic transaction, eliminating the need for bespoke smart contracts. Solana DvP has undergone external security audits and is ready for use with real funds, though no major bank has yet adopted it for live trades.

The standard, released under the MIT license, includes an API for atomic settlement, isolated escrow, and enforced deadlines. It is built on Solana's SPL Token standard and Token-2022, incorporating features like permanent delegate, pausable tokens, and transfer hooks. Catherine Gu, head of product for digital assets at Solana Foundation, highlighted that atomic settlement reduces counterparty risk inherent in traditional finance. J.P. Morgan's Rhodel D'souza noted that an open standard for DvP is crucial for institutional market participants to scale operations.

Solana Foundation claims Solana is the leading venue for tokenized real-world assets, though Ethereum still holds the largest share by value. Solana has carved out a strong position in tokenized equities, capturing 19.3% of that segment as of early September. The launch builds on prior collaboration with J.P. Morgan, which facilitated a US commercial paper issuance on Solana earlier this year. Solana Foundation is currently recruiting design partners for a full production release.