Solana Launches Institutional Settlement Standard with J.P. Morgan Collaboration
MissedBlock Desk · · 3 min read
Updated
Solana Foundation Targets Institutional Finance with New Settlement Tool
The Solana Foundation is making a direct bid for institutional finance, launching an open-source program designed to enable banks to settle trades on its network with the same certainty they expect from traditional markets.
Announced Monday, the tool, named Solana DvP (Delivery-versus-Payment), is an open-source escrow program that provides financial institutions with a standardized API for delivery-versus-payment settlement. This mechanism is fundamental to ensuring that an asset and its corresponding payment are exchanged simultaneously.
Released under the permissive MIT license, the initiative aims to bring this settlement guarantee to public blockchain infrastructure as a reusable standard, moving away from the bespoke smart contracts that institutional trades have historically relied upon.
The foundation stated that J.P. Morgan provided input on institutional settlement practices, which informed the design of the tool.
“Atomic settlement removes counterparty risk that is inherent in traditional finance,” said Catherine Gu, the foundation’s head of product for digital assets. She added that the program offers institutions a single open standard “with finality in seconds instead of days.”
Rhodel D’souza, J.P. Morgan’s head of markets digital assets, commented that a shared, open standard for atomic delivery-versus-payment is “exactly the kind of foundational infrastructure institutional market participants require.”
In conventional markets, delivery-versus-payment involves a multi-day process through clearinghouses, depositories, and custodians, which can tie up capital for one to two days. Solana DvP streamlines this into a single atomic transaction, where both legs of the settlement occur together or not at all. The program supports SPL Token and Token-2022, including extensions crucial for regulated issuers such as permanent delegate, pausable tokens, and transfer hooks. It has also undergone external security audits. The foundation indicated plans to incorporate privacy features to ensure settlement confidentiality.
This launch builds upon Solana’s increasing appeal among institutions focused on tokenized real-world assets.
In August, BlackRock, the world’s largest asset manager, introduced a tokenized money market fund for stablecoin reserves, recording ownership on Solana alongside Ethereum. This fund was structured to qualify as a reserve asset under the GENIUS Act.
Meanwhile, Kraken has utilized Solana to offer tokenized U.S. stocks to overseas customers through its xStocks product. Solana has emerged as a prominent platform for tokenized equities, and infrastructure like DvP is intended to solidify this position by providing regulated players with a trusted method for on-chain settlement.