Wall Street at Solana time. The Solana Foundation has released Solana DvP, an open source settlement program designed for financial institutions. JP Morgan contributed to its design.
The principle involves a single transaction: the asset and its payment change hands at the same time, or the exchange does not take place. The settlement of an American action still requires a full working day, but that will not last…
Key Points
Solana Foundation releases open source MIT-licensed escrow program to unwind tokenized asset trades
JP Morgan provided its know-how on the settlement practices of major market players
Both legs of a trade are settled in a single transaction, compared to a minimum business day on US stocks.
SPL Token and Token-2022 compatibility, external security audits completed, privacy features announced
Solana DvP: Delivery against payment becomes an open standard
Until now, an institution that wanted to unwind a tokenized exchange on a public blockchain had its own smart contract developed. We had to pay for the development and redo the audit for each operation. The Solana Foundation instead offers a reusable brick, distributed under the MIT license which authorizes the recovery and modification of the code without commercial constraints.
The program provides a standardized delivery versus payment API: both legs of the transaction settle together, or neither leg settles. Catherine Gu, product manager of digital assets at the Solana foundation, makes a straightforward commercial argument to trading rooms:
“Atomic settlement removes the counterparty risk inherent in traditional finance. The Solana DvP program provides institutions with a single open standard across the entire Solana ecosystem, on public infrastructure, with completion in seconds instead of days. »
Catherine Gu, Product Manager of Digital Assets at Solana Foundation – Source: Decrypt
The program supports the SPL Token and Token-2022 token standards, with the extensions on which regulated issuers depend such as the permanent delegate, pausable tokens and transfer hooks (which it will be recalled that they trigger a compliance check with each transfer, a basic condition for a financial security subject to sanctions lists).
The code has passed external security audits. The foundation also announces confidentiality functions, so that a bank can settle a transaction without exposing its positions to its competitors on a public register.
Solana confirms a transaction in a matter of seconds. The Alpenglow update, approved by a vote of validators, aims for a finality of around 150 milliseconds, when the American clearing chain still immobilizes collateral for twenty-four hours.
What JP Morgan and BlackRock are already doing on Solana
However, JP Morgan did not write a line of code. His contribution focused on the settlement practices of large market players, those which determine how much capital sits dormant while a transaction awaits its outcome.
Rhodel D’souza, head of digital assets for markets at JP Morgan, publicly assumes this contribution:
“An open, shared standard for atomic delivery versus payment is exactly the type of foundational infrastructure that institutional participants need to operate at scale without introducing settlement risk or exposure to counterparty risk. We were happy to provide our regulatory expertise. »
Rhodel D’souza, Head of Digital Assets for Markets at JP Morgan – Source: Decrypt
The bank did not wait for Solana to touch the blockchain. Its Kinexys division (formerly Onyx) boasts about $2 billion in daily volume, and its JPMD deposit token launched on Base, Coinbase's layer 2 network.
Solana already hosts institutional products. BlackRock's tokenized monetary fund BUIDL, launched in 2024, lists part of its shares on the network alongside Ethereum. Kraken issues tokenized American stocks on Solana offered to its clients outside the United States under the xStocks brand. And Solana spot ETFs have been listed in the United States since late 2025, some with built-in staking.
What these products did not yet have was a common mechanism to complete the exchange. A tokenized fund that changes hands for digital dollars today goes through a bilateral agreement or a contract written for the occasion, with the risk that one of the two parties delivers without receiving.
