Solana Launches Institutional-Grade DvP Settlement Program

The Solana Foundation has introduced Solana DvP, an open-source delivery-versus-payment settlement program tailored for financial institutions to settle tokenized assets and payments on the Solana blockchain. The program features an open-source API with isolated escrow and enforced deadlines, ensuring atomic settlements. J.P. Morgan contributed input on institutional settlement practices, though the bank’s involvement was limited to advisory input and not an endorsement.

Solana DvP supports SPL Token and Token-2022 assets, including extensions like permanent delegates and transfer hooks. The system has undergone external security audits and is ready for use with real funds. The foundation aims to add privacy features for confidential settlements in the future.

The program is designed to replace custom smart contracts with a reusable open standard, potentially reducing settlement times from days to seconds. Catherine Gu, Head of Product for Digital Assets at the Solana Foundation, highlighted the efficiency gains, stating, "Solana DvP provides institutions with one open standard across the Solana ecosystem, on public infrastructure, with finality in seconds instead of days."

Rhodel D’souza, Head of Markets Digital Assets at J.P. Morgan, emphasized the importance of shared standards, noting that "a shared, open standard for atomic delivery-versus-payment is the kind of infrastructure institutional market participants need to operate at scale without settlement risk and counterparty exposure."

The launch aligns with Solana’s push into institutional markets, following recent partnerships like Shinhan Asset Management’s tokenized fund and Tetra Digital’s Canadian-dollar stablecoin CADD. The Solana Foundation is seeking design partners and early participants ahead of the production release of Solana DvP.