Solana unveils institutional settlement standard with JPMorgan input

The Solana Foundation has introduced Solana DvP, an open-source program aimed at enabling banks and financial institutions to settle trades of tokenized assets on the Solana blockchain in a single step. Announced on Monday, October 5, in New York, the program was developed with input from JPMorgan on institutional settlement practices.

Solana DvP is an escrow program released under the MIT license, allowing anyone to use, adapt, and build on it without licensing fees. It provides a standard method for delivery-versus-payment (DvP) settlement, a fundamental safeguard in securities markets that ensures the asset and cash change hands simultaneously, eliminating counterparty risk. Traditional markets typically take one to two days for this process, while Solana claims its program completes it in seconds with finality.

The program supports Solana's standard token formats, including Token-2022 features that allow regulated issuers to pause a token or restrict transfers. It can be used by any two counterparties with any settlement agent, such as a bank, custodian, or exchange. The foundation has stated that the program has passed external security audits and plans to add privacy features to keep settlement details confidential. They are inviting design partners and early participants ahead of a full production release.

Until now, institutions settling on-chain have relied on custom smart contracts for each deal. A shared open standard could reduce costs and make tokenized securities easier to trade between firms without custom tooling. JPMorgan's Rhodel D'souza, Head of Markets Digital Assets, noted that a shared open standard for atomic settlement is foundational for institutional participants. However, JPMorgan's press release includes a disclaimer stating that their involvement was limited to advisory roles and does not imply endorsement or commitment to using the program.