Solana Launches Open DvP Standard for Institutions
Solana Foundation has introduced an open-source delivery-versus-payment program designed to give financial institutions a standardized way to settle tokenized assets atomically on the Solana network.
Financial institutions moving securities and other assets onchain need more than speed. They also need settlement certainty, controlled escrow and protection against counterparty risk.
Solana Foundation says its new Solana DvP program is designed to address those requirements by providing a common settlement framework that can be used across the Solana ecosystem.
Solana DvP Targets Institutional Settlement
Announced on October 6, Solana DvP is an open-source escrow program that provides financial institutions with an API for delivery-versus-payment (DvP) settlement on Solana.
Released under the MIT license, the program is intended to provide a reusable standard built around three core features: atomic settlement, isolated escrow and enforced deadlines.
Until now, institutions conducting onchain trades have generally relied on bespoke smart contracts for settlement. Solana DvP is designed to replace those individual implementations with one standardized settlement rail.
J.P. Morgan provided feedback on institutional settlement practices and requirements during the program’s development, helping Solana Foundation incorporate market-specific considerations into the framework.
“Atomic settlement removes counterparty risk that is inherent in traditional finance. Solana DvP program provides institutions with one open standard across the Solana ecosystem, on public infrastructure, with finality in seconds instead of days.”
— Catherine Gu, Head of Product, Digital Assets, Solana Foundation
How Atomic DvP Works
Delivery-versus-payment is a fundamental mechanism in securities markets because it ensures that the asset and payment are exchanged simultaneously, reducing the risk that one party transfers value without receiving the other side.
Traditional securities settlement can involve clearinghouses, depositories and custodians, with capital typically tied up for one to two days. Solana DvP is designed to compress that process into a single atomic transaction.
The transaction completes only when both settlement legs are successfully executed. If one side fails, neither side settles.
This structure is intended to reduce counterparty and settlement risk while providing finality in seconds rather than days.
Support For Institutional Token Standards
Solana DvP is designed to support assets that regulated financial institutions can hold. The program works with SPL Token and Token-2022, including extensions that can support requirements relevant to regulated issuers.
These include:
- Permanent delegate
- Pausable tokens
- Transfer hooks
The framework can be used by two counterparties with any settlement agent, including banks, custodians and exchanges.
That flexibility is central to Solana Foundation’s approach: rather than requiring each institution to develop its own settlement architecture, the program offers an open standard that can be adopted and extended across the ecosystem.
Audited And Ready For Real Funds
Solana Foundation said Solana DvP has undergone external security audits and is ready for use with real funds.
The foundation also plans to add privacy capabilities that would allow settlement transactions to be conducted privately and confidentially, addressing another consideration for institutional participants.
Solana is now seeking design partners and early participants ahead of the production release.
“A shared, open standard for atomic delivery-versus-payment is exactly the kind of foundational infrastructure institutional market participants require to operate at scale without introducing settlement risk and counterparty exposure. We were pleased to contribute our settlement expertise.”
— Rhodel D’souza, Head of Markets Digital Assets, J.P. Morgan
Why Solana DvP Matters
The launch addresses a fundamental requirement for tokenized securities and institutional financial markets: ensuring that an asset and its payment settle together without leaving either side exposed during the transaction.
By offering a reusable standard instead of requiring institutions to build bespoke smart contracts, Solana DvP could make public-network settlement easier to deploy across banks, custodians and exchanges. Whether that translates into broad institutional adoption will depend on how readily market participants move from isolated implementations to shared settlement infrastructure.
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