The Solana Foundation on Oct. 6 introduced Solana DvP, an open-source delivery-versus-payment settlement standard aimed at institutional trading. The framework is designed to complete atomic settlement on-chain within seconds, replacing the one- to two-day settlement cycle common in traditional markets. JPMorgan contributed settlement expertise to help shape the specification.
Atomic settlement in a single on-chain transaction
In traditional finance, assets and cash are typically settled through layered processes involving clearinghouses and custodians, a structure that can take one to two days. During that window, capital is tied up and counterparties remain exposed to settlement risk.
Solana DvP is built to compress those steps into a single atomic transaction in which the asset leg and the payment leg settle together. Either both sides complete at the same time, or the trade does not go through. The foundation said that structure removes the risk that one party receives assets or funds while the other side fails to perform.
Catherine Gu, digital asset product lead at the Solana Foundation, said atomic settlement removes counterparty risk embedded in traditional finance. She said Solana DvP gives institutions a single open standard across the Solana ecosystem and cuts finality from days to seconds.
JPMorgan helped define key requirements
The standard was not developed by the Solana Foundation alone. According to the report, JPMorgan brought decades of settlement-related information and experience into the project, helping define requirements around cut-off times, custody segregation, and token extension features relied on by regulated issuers.
Those features include pausable tokens and transfer hooks under the Token-2022 standard. Pausable tokens include an emergency stop mechanism that allows administrators to freeze incoming transfers when needed. Transfer hooks let issuers insert additional compliance checks during the transfer process.
Rhodel D’souza, head of digital asset markets at JPMorgan, said shared open standards are the infrastructure institutional market participants need in order to scale operations.
From one-off transactions to repeatable business flow
The Solana Foundation said the network has already made tangible progress in tokenized asset settlement. Galaxy Digital previously settled commercial paper on Solana using USDC in a trade arranged through JPMorgan. Solana DvP is meant to provide an open standard that has been externally reviewed, turning isolated transactions into repeatable business activity.
The report said institutions currently rely on customized, one-off smart contracts when settling trades on-chain. Solana DvP is intended to replace that patchwork approach with a unified open-source standard, reducing development costs and review time for each transaction.
Not the first DvP model, but built as an open standard on public infrastructure
The article noted that Solana’s DvP framework is not the first of its kind. Its distinguishing feature, according to the report, is that it is an open standard built on public infrastructure.
For comparison, JPMorgan’s Kinexys has already tested a cross-chain DvP transaction with Ondo Finance, linking its private payments infrastructure to the public Ondo Chain testnet. ClearToken has also launched a DvP settlement solution based on the Canton Network.
External security audit completed, privacy is next
The foundation said the DvP program has passed an external security audit and is ready to handle real money. The next step is to add privacy features so the settlement process can remain confidential.
The report also pointed to comments made by institutional participants at Consensus Hong Kong in February, where robust privacy capabilities were repeatedly described as a key condition for large-scale blockchain adoption. Solana’s privacy roadmap is presented as a direct response to that demand.
Institutional infrastructure becomes a clearer focus for Solana
The launch signals a broader push inside the Solana ecosystem toward institutional-grade infrastructure. The report said atomic settlement is a necessary condition for scaling tokenized assets, because traditional financial institutions are unlikely to move large pools of assets on-chain without a reliable and low-cost settlement mechanism.
For now, Solana already has the Galaxy Digital commercial paper transaction as a live example. The next points to watch are when the first institutional trades using the Solana DvP standard go live and when the privacy features are completed.