The Solana Foundation announced Solana DvP, an open-source escrow program designed to provide financial institutions with a standardized API for delivery-versus-payment settlement on the blockchain. Released under the MIT license, the tool was developed with input from J.P. Morgan.
Delivery-versus-payment is a settlement mechanism that ensures an asset and its payment change hands simultaneously, eliminating the counterparty risk inherent in traditional finance. In conventional markets, this process typically involves a multi-day chain of clearinghouses, depositories, and custodians that can tie up capital for one to two days. Solana DvP compresses this into a single atomic transaction where both legs settle together or neither does, with finality occurring in seconds.
Catherine Gu, the Solana Foundation's head of product for digital assets, stated that the program offers institutions a single open standard instead of the bespoke smart contracts institutional trades have typically relied on. Rhodel D'souza, J.P. Morgan's head of markets digital assets, described a shared, open standard for atomic delivery-versus-payment as exactly the kind of foundational infrastructure institutional market participants require.
The program supports SPL Token and Token-2022, including extensions that regulated issuers depend on such as permanent delegate, pausable tokens, and transfer hooks. It has undergone external security audits, and the foundation plans to add privacy features to keep settlements confidential.
The launch reflects Solana's growing institutional adoption in tokenized assets. BlackRock, the world's largest asset manager, launched a tokenized money market fund for stablecoin reserves on Solana in August, while Kraken has used Solana to offer tokenized U.S. stocks to overseas customers through its xStocks product. Infrastructure like DvP is intended to deepen institutional participation by providing a trusted mechanism for on-chain settlement.
