Solana Foundation Launches Open-Source Delivery-Versus-Payment Program

The Solana Foundation has unveiled Solana DvP, an open-source program aimed at streamlining institutional trade settlements. By enabling atomic, on-chain delivery-versus-payment, the tool allows asset and payment transfers to settle simultaneously in seconds, a process that typically takes days in traditional finance.

This new standard is designed to eliminate counterparty risk by ensuring that trades either complete in full or not at all. It replaces the current practice where institutions rely on custom, one-off smart contracts for individual on-chain deals.

Catherine Gu, head of product for Digital Assets at the Solana Foundation, noted that the program provides a single open standard on public infrastructure, removing the inherent counterparty risk found in traditional markets.

JPMorgan contributed settlement expertise to the project, providing insights on requirements such as escrow isolation, deadlines, and the use of token extensions. These include features like pausable tokens, which allow administrators to freeze transfers, and transfer hooks under the Token-2022 standard.

Rhodel D'souza, head of markets digital assets at JPMorgan, stated that a shared, open standard for atomic delivery-versus-payment is the type of infrastructure institutional participants need to operate at scale without introducing settlement risk.

The program has already passed external security audits and is ready for use with real funds. The foundation also plans to integrate additional privacy features, which institutional participants have identified as a priority for broader blockchain adoption.

Solana has previously been involved in institutional tokenization experiments, such as a commercial paper deal for Galaxy Digital settled in USDC. The new DvP standard is intended to help transition such one-off experiments into regular business operations.