Solana Launches Trade Settlement Program with JPMorgan Input

The Solana Foundation introduced Solana DvP on Oct. 6, an open-source program designed to settle institutional trades on its public blockchain within seconds. The system transfers an asset and its payment together, reducing the risk of one party receiving funds without delivering its side of the trade. JPMorgan provided input on securities settlement practices and institutional requirements.

Solana DvP Transfers Assets and Payments Together

Delivery-versus-payment links the transfer of an asset to the payment for it. Solana DvP combines both transfers in one blockchain transaction. Either the entire exchange completes or neither transfer takes place, preventing a partially completed trade from leaving one participant without the agreed payment or asset.

Traditional settlement often involves clearinghouses, custodians and other intermediaries. The foundation said this process can tie up capital for one to two days. Its program aims to shorten the time between an agreed trade and the final exchange of ownership.

Catherine Gu, the foundation’s Head of Product for Digital Assets, said the program offers institutions “finality in seconds instead of days.” She described the system as a common settlement standard across the Solana ecosystem.

The foundation also said institutions have typically used custom smart contracts to settle trades on-chain. Solana DvP offers a reusable alternative. Instead of commissioning separate settlement code for individual transactions, participants can use a shared program with common rules for completing exchanges.

JPMorgan Provides Advice on Institutional Requirements

JPMorgan contributed its experience in securities settlement to help the foundation address institutional needs. The program includes trade deadlines and separate escrow arrangements, which hold assets for a transaction until its settlement conditions are met.

Rhodel D’Souza, JPMorgan’s head of markets digital assets, said, “We were pleased to contribute our settlement expertise.” He described a shared settlement standard as infrastructure that institutional participants need to conduct transactions at scale.

The foundation specified that JPMorgan’s involvement covered advice on settlement practices. The bank did not design, develop or operate Solana DvP. Its contribution also does not represent approval, endorsement or a guarantee of the program’s performance.

Solana DvP supports the network’s existing token standard and Token-2022, an expanded version with additional controls. These include pausable tokens, which allow administrators to stop transfers, and transfer hooks, which apply additional checks when tokens move. The features support requirements used by regulated token issuers.

Participants can work with settlement agents such as banks, custodians or exchanges. The program therefore gives institutions a common settlement mechanism while allowing different firms to handle the arrangements surrounding each trade.

Privacy Features Remain Planned Ahead of Production Release

The foundation said Solana DvP has completed external security audits and is ready for transactions involving real funds. It released the software under the MIT license, allowing developers and institutions to use and adapt the code.

The announcement follows other institutional blockchain settlement projects. JPMorgan’s Kinexys previously tested a cross-chain delivery-versus-payment transaction with Ondo Finance. ClearToken has also introduced delivery-versus-payment settlement through applications on the Canton Network.

For Solana DvP, the next planned addition is privacy functionality to keep trade settlements confidential. The foundation has not announced a date for these features. The announcement did not provide a timetable for the full production release. It is seeking design partners and early participants ahead of the production release.

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