Solana Foundation launches DvP settlement program
Solana Foundation launched an open-source DvP program for atomic onchain settlement, with J.P. Morgan input and support for regulated token features.
Crypto Bulletin Newsroom 2 min read
The Solana Foundation announced Solana DvP on Oct. 5, an open-source program for financial institutions to settle an asset and its payment in one atomic transaction; the foundation says finality can come in seconds rather than days. In its announcement, the foundation said J.P. Morgan provided input on institutional settlement practices.
How does Solana DvP settle trades?
The program uses isolated escrow and settlement deadlines so both sides of a trade settle together or neither does, according to the foundation. SolanaFloor reported that the shared standard is intended to replace bespoke smart contracts built for individual onchain settlement use cases.
The foundation says the mechanism aims to reduce counterparty risk by moving the asset and payment in the same transaction. Traditional securities settlement can tie up capital for one to two days, while the foundation says Solana DvP can reach finality in seconds.
Which tokens and settlement agents does it support?
Solana DvP supports SPL Token and Token-2022 assets, including extensions such as pausable tokens, permanent delegates and transfer hooks, the foundation said. Counterparties can use a settlement agent such as a bank, custodian or exchange.
J.P. Morgan’s contribution was input on securities settlement practices and institutional requirements. The foundation said that input helped shape the program; its announcement also specifies that J.P. Morgan did not design, develop, operate, approve or endorse Solana DvP.
Is the program ready for production?
The foundation says Solana DvP has completed external security audits and is ready for use with real funds, but it is seeking design partners and early participants ahead of a production release. It also plans to add privacy features for confidential trade settlements.
SolanaFloor reported that institutions can access the program through the Markets module of the Solana Developer Platform. The foundation released the program under the MIT license, allowing others to adopt and build on the code.
Sources
- announcement — solana.com