The Solana Foundation has launched Delivery-versus-Payment (DvP), an open-source settlement tool built with input from J.P. Morgan. It lets tokenized assets and payments settle together in a single blockchain transaction, cutting settlement times from days to seconds.
A Shared Standard Replaces Custom Contracts
Firms settling onchain have typically relied on bespoke smart contracts for each trade, with payments and assets moving separately through clearinghouses, depositories, and custodians. That process can take one to two days, and it creates a risk that one side completes a trade while the other does not.
Solana DvP addresses this by using an atomic transaction: the payment and the asset transfer happen at the same time, and if one side fails, neither side settles. This is designed to reduce counterparty risk inherent in traditional finance. According to Catherine Gu, head of Product, Digital Assets at the Solana Foundation: "Atomic settlement removes counterparty risk that is inherent in traditional finance."
J.P. Morgan's Role Is Advisory
J.P. Morgan provided input on traditional securities settlement practices for the framework, but its role is advisory rather than operational. Rhodel D'Souza, head of Markets Digital Assets at J.P. Morgan, said a shared open standard is the type of infrastructure institutions need to operate at scale without introducing settlement risk and counterparty exposure.
The code is released under the MIT open-source license, has been externally audited, and can work with any settlement agent, including exchanges, custodians, and commercial banks.
Token-2022 Adds Controls for Regulated Assets
The framework also supports Solana's Token-2022 standard, which adds features aimed at regulated assets. These include pausable tokens, which can stop transfers during an emergency, and transfer hooks, which give programmatic control over how assets move.
Solana said the DvP code has completed external security audits and is ready for use with real funds. The foundation is now looking for design partners before wider production use, and it is also working on privacy features that could let institutional settlements stay confidential.
Source: Coinpedia Fintech News
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