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Solana Foundation launches DvP settlement program

Solana Foundation launched an open-source DvP program with J.P. Morgan input, aiming to give institutions a shared way to settle trades on Solana.

Uruguay Can Editorial

Solana Foundation launches DvP settlement program

Institutional trades settling on Solana have typically relied on bespoke smart contracts; on October 6, the Solana Foundation announced Solana DvP, an open-source program intended to give financial institutions a shared way to settle trades on the network. The Solana Foundation announcement says J.P. Morgan provided input on institutional settlement practices and requirements.

How is Solana DvP meant to settle a trade?

Delivery-versus-payment, or DvP, moves an asset and its payment together, so neither side completes unless the other does. The Foundation describes its program as an escrow system with an API for that process, isolated escrow and deadlines. In practice, the proposed sequence is:

  1. The parties arrange the asset and payment legs for settlement through the program.
  2. The program holds them in escrow while applying its settlement conditions and deadlines.
  3. Both legs settle in one atomic transaction, or neither does.

The Foundation says this could compress a process that can tie up capital for one to two days in traditional markets into settlement with finality in seconds. That is the program’s stated aim, not a claim that all institutional settlement on Solana already works this way.

What role did J.P. Morgan play?

J.P. Morgan contributed input on settlement practices; the Foundation says that feedback helped shape the program’s design. Its announcement also specifies that the bank did not design, develop, operate, approve, certify or guarantee Solana DvP. In comments reported by Decrypt, the bank’s head of Markets Digital Assets, Rhodel D’souza, described an open standard for atomic DvP as infrastructure institutional market participants require.

Can institutions use it now?

The program is released under the MIT license and supports SPL Token and Token-2022, including extensions such as pausable tokens and transfer hooks. The Foundation says it has undergone external security audits and is ready for use with real funds, while also inviting design partners and early participants ahead of a production release. It plans to add privacy features later, so confidential settlement is not described as available in the current program.

Sources