The Solana Foundation launched this Tuesday (6) the Solana DvP, an open source program for settling financial transactions via delivery versus payment on a public blockchain. JPMorgan contributed knowledge about practices and requirements used by institutions in the settlement process.
The system allows the transfer of an asset and its corresponding payment to occur atomically. Both legs of the transaction are completed together or neither is executed, reducing the risk of a counterparty delivering the asset without receiving payment.
The program was made available under the MIT license and uses an isolated escrow structure, defined execution deadlines and an open API. The proposal is to replace custom contracts with reusable infrastructure across different market participants.
The Solana Foundation states that settlement can achieve finality in seconds, while traditional processes can keep capital committed for one or two days.
JPMorgan contributed institutional settlement requirements
JPMorgan did not announce the adoption of Solana DvP nor a migration of operations to the network. The bank provided knowledge about institutional settlement requirements that helped guide the development of the standard.
The program supports SPL Token and Token 2022, including features aimed at regulated issuers, such as transfer restrictions and the ability to pause tokens. Banks, custodians and exchanges can also act as settlement agents.
The initiative targets a central step for the expansion of tokenized assets among institutions. Beyond issuing assets on blockchain, the market needs mechanisms that guarantee the simultaneous transfer of money and assets.
Solana DvP has already undergone external security audits. The foundation is seeking early participants before the production launch and plans to add privacy and confidentiality features for future settlements.
