The Solana Foundation unveiled Solana DvP, an open-source delivery-versus-payment protocol designed to execute institutional trades atomically on-chain, compressing settlement from one to two days into seconds.
Traditional settlement introduces principal risk—one party defaults after receiving either the asset or cash. Solana DvP eliminates this exposure by bundling both legs into a single atomic transaction. Either the trade completes in full with both sides settling instantly, or it does not execute at all.
The protocol replaces the fragmented approach institutions currently face, where they commission custom smart contracts for each individual deal. It provides one open standard across the Solana ecosystem on public infrastructure.
"Atomic settlement removes counterparty risk that is inherent in traditional finance," Catherine Gu, head of product for digital assets at the Solana Foundation, said in a statement. "Solana DvP provides institutions with one open standard across the Solana ecosystem, on public infrastructure, with finality in seconds instead of days."
JPMorgan contributed settlement expertise to the project, helping define requirements for escrow isolation, deadlines and token extensions critical for regulated issuers. The bank specified support for pausable tokens and transfer hooks under Solana's Token-2022 standard—features that allow administrators to freeze transfers when necessary and enable custom transfer logic.
"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," Rhodel D'Souza, head of markets digital assets at JPMorgan, said. "We were pleased to contribute our settlement expertise."
The protocol enables scaling of one-off institutional deals into regular operations. The Solana Foundation previously arranged a commercial paper issuance for Galaxy Digital through JPMorgan, settled in USDC stablecoins. A standardized, audited DvP framework converts these exceptions into standard market infrastructure.
Solana DvP stands apart as an open standard built on public infrastructure. JPMorgan's Kinexys previously tested a cross-chain DvP trade with Ondo Finance, though that system relied on the bank's permissioned payments layer. Solana's approach prioritizes openness and accessibility across the ecosystem.
