Solana Foundation Launches Open-Source DvP System for Institutional Settlements
The Solana Foundation has introduced Solana DvP, an open-source delivery-versus-payment (DvP) system designed to enable institutional investors to settle trades on-chain in seconds rather than days. The program allows both legs of a trade to be settled atomically, ensuring that either both transactions complete simultaneously or neither does. Catherine Gu, head of product for digital assets at the Solana Foundation, emphasized that the program offers a unified open standard across the Solana ecosystem, providing finality in seconds.
J.P. Morgan contributed insights on institutional settlement practices and requirements. Rhodel D'Souza, head of markets digital assets at J.P. Morgan, described the effort as a shared, open standard for atomic delivery-versus-payment. The program is released under the MIT license and is built as a reusable standard rather than a one-off contract, featuring isolated escrow and enforced deadlines. The Foundation noted that Solana DvP has undergone external security audits and is ready for use with real funds, with plans to add privacy features for confidential settlements.
Solana DvP is designed to replace bespoke smart contracts that institutional on-chain trades have traditionally relied on. The system uses a settlement_authority address to atomically settle a trade, allowing either counterparty or the authority to abort the process before settlement and recover the funded leg. The program supports SPL Token and Token-2022, including extensions such as permanent delegate, pausable tokens, and transfer hooks. It does not include features like order books, price discovery, matching, netting, partial fills, or KYC checks.
The launch of Solana DvP is part of Solana’s broader push to attract traditional finance institutions. The Foundation highlighted that the program can be used by any two counterparties with any settlement agent, whether a bank, custodian, or exchange. While the public record does not yet show a settlement, the Foundation’s technical guide warns that the reference implementation is for exploration and educational purposes only, requiring comprehensive security audits, key management, regulatory compliance review, legal consultation, and testing before production use.