Solana Debuts Institutional DvP Standard With J.P. Morgan Input

The Solana Foundation has launched Solana DvP, an open-source escrow program designed to give financial institutions a standardized API for delivery-versus-payment settlement, according to Decrypt. Released under the MIT license with input from J.P. Morgan, the tool aims to bring traditional market settlement guarantees to public blockchain infrastructure.

Streamlining Multi-Day Settlement

In conventional financial markets, delivery-versus-payment execution involves a multi-day chain of clearinghouses, depositories, and custodians that can tie up institutional capital. Solana DvP compresses this process into a single atomic transaction, ensuring both the asset and the payment settle simultaneously or not at all. According to the foundation, the program reduces settlement timelines from days to seconds while removing traditional counterparty risk.

Regulatory Compatibility and Support

The open-source program supports SPL Token and Token-2022 standards, incorporating extensions required by regulated issuers such as permanent delegate features, pausable tokens, and transfer hooks. The software has also undergone external security audits. The Solana Foundation stated that it plans to integrate privacy features to ensure settlements can remain confidential for institutional participants.

Key facts

• The Solana Foundation launched Solana DvP, an open-source escrow program for institutional delivery-versus-payment settlement.
• The tool was developed with input from J.P. Morgan regarding institutional settlement practices.
• The program compresses multi-day clearinghouse processes into a single atomic transaction settling in seconds.
• Solana DvP supports SPL Token and Token-2022 standards, including permanent delegate and transfer hook extensions.