Solana Foundation introduces DvP rail for institutional trades

Traders Union
All News
Crypto
Solana Foundation introduces DvP

Highlights

Solana DvP links asset delivery directly to payment.
J.P. Morgan advised on institutional settlement requirements.
The open-source program supports regulated token features.

According to a press release from the Solana Foundation, the program provides an open-source API for delivery-versus-payment settlement and is available under the MIT license. J.P. Morgan contributed feedback on securities settlement practices and institutional requirements, although its involvement did not extend to designing, developing, operating, or endorsing the program.

One transaction replaces separate settlement legs

Delivery versus payment links the transfer of an asset directly to payment. Traditional securities infrastructure generally coordinates that process through clearinghouses, depositories, and custodians, leaving capital tied up during settlement.

Solana DvP instead places both sides of a transaction into an atomic process: either the asset and payment settle together or neither transfer is completed. The Foundation says finality can be achieved in seconds, compared with the one-to-two-day settlement cycle common in conventional markets.

The program also uses isolated escrow and transaction deadlines. Rather than requiring institutions to create separate smart contracts for individual onchain transactions, it provides a common settlement mechanism that can be reused across applications.

Built for tokenized institutional assets

Solana DvP supports both SPL Token and Token-2022 assets. The latter includes controls relevant to regulated issuers, including permanent delegates, pausable tokens, and transfer hooks.

The structure allows two counterparties to settle through an agent such as a bank, custodian, or exchange. That design is intended to accommodate existing financial intermediaries rather than requiring institutions to abandon their established operational roles when moving transactions onchain.

The Foundation said the program has undergone external security audits and can be used with real funds. Privacy features are also planned so institutions can eventually keep transaction details confidential, an important consideration for financial firms that cannot expose sensitive trading information on public infrastructure.

A common rail for institutional settlement

The significance of Solana DvP lies less in creating another tokenization product than in attempting to standardize how tokenized transactions settle. Institutional blockchain projects have often depended on custom infrastructure, increasing integration work when assets or counterparties change.

A reusable delivery-versus-payment standard could reduce that fragmentation while preserving the basic settlement principle used in traditional securities markets. The program is not yet a guarantee of broad institutional adoption: the Solana is still seeking design partners and early participants ahead of its production release. J.P. Morgan's role was limited to providing settlement expertise, leaving adoption, operation, and performance to the wider ecosystem.

We also reported the Solana Foundation expands partnerships and appoints former Binance and Polygon executives.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.