Solana Foundation launches open-source DvP program to settle tokenized assets in seconds, with JPMorgan input

The Solana Foundation has launched Solana DvP, an open-source program that lets financial institutions settle tokenized assets and payments in a single blockchain transaction, with finality in seconds rather than days.

Announced Oct. 6, the program was developed with input from JPMorgan on securities settlement practices, though the bank did not build, operate or endorse it.

Solana DvP puts asset delivery and payment into one transaction

At the heart of Solana DvP is the delivery-versus-payment model, commonly known as DvP. Instead of allowing one party to transfer an asset before receiving payment, the system is designed so both sides of a trade settle atomically.

In practice, the asset and payment are placed into isolated escrow arrangements before a designated settlement authority executes the transaction. If the entire transaction succeeds, both sides move simultaneously. If it fails, neither side is transferred.

That structure is designed to reduce principal and counterparty settlement risk while eliminating the need for institutions to build bespoke smart contracts for every tokenized securities transaction.

Catherine Gu, Solana Foundation’s head of product for digital assets, said the system is intended to give financial institutions a common settlement framework.

“Atomic settlement removes counterparty risk that is inherent in traditional finance,” Gu said. She added that the program provides “one open standard across the Solana ecosystem” with finality in seconds instead of days.

The program also incorporates settlement deadlines and allows counterparties to designate a settlement agent, which can be a bank, custodian or exchange.

However, it is not a complete trading venue. Solana DvP does not provide order matching, price discovery, netting or partial fills. It also does not independently perform know-your-customer checks or determine whether an investor is eligible to hold a particular asset.

Those functions remain outside the settlement layer.

JPMorgan contributed expertise, but did not build the system

JPMorgan’s involvement has added institutional weight to the announcement, but the bank’s role is narrower than the headline association might suggest.

The Solana Foundation said JPMorgan provided input on securities settlement practices and institutional requirements while the Foundation developed the program. JPMorgan did not design, develop, operate or approve the system, nor has it endorsed or guaranteed its performance.

Rhodel D’Souza, JPMorgan’s head of markets digital assets, described the underlying concept as important infrastructure for institutional markets.

“A shared, open standard for atomic delivery-versus-payment is exactly the kind of foundational infrastructure institutional market participants require to operate at scale,” D’Souza said.

That distinction matters because financial institutions have increasingly experimented with tokenized securities and blockchain-based settlement, but many projects have relied on customized infrastructure or permissioned networks.

The new program represents Solana Foundation’s attempt to turn atomic settlement into a reusable public standard rather than a one-off institutional deployment.

It also fits into the Foundation’s wider effort to attract financial institutions to the network through tokenization, payments and other capital-market infrastructure.

The Foundation says Solana DvP supports both SPL Token and Token-2022 assets. Token-2022 support includes features such as permanent delegates, pausable tokens and transfer hooks, which can provide issuers with additional controls over token transfers.

Security audits completed, but privacy is still coming

The launch follows external security reviews of the program, an important consideration because institutional settlement systems would potentially handle valuable financial assets.

The Foundation says the program has undergone external security audits and is ready for use with real funds. It is nevertheless continuing to seek design partners and early participants before a broader production release.

The program also has limitations that institutions will need to consider.

Because the settlement occurs on a public blockchain, transaction information is not automatically private. The Foundation said it plans to add privacy and confidential settlement capabilities in a future version, but did not provide a specific release date.

There are also asset-level risks that atomic settlement cannot eliminate. A blockchain transaction can ensure that two legs settle together, but it cannot remove the credit, redemption or issuer risks associated with the underlying tokenized asset.

That distinction is crucial as the financial industry moves beyond simply putting securities onchain and toward building infrastructure around them.

For now, the biggest selling point of Solana DvP is straightforward: the asset and payment are designed to move together, while the blockchain provides a common settlement layer for both.

SOL remains around $120 as institutional narrative grows

The announcement arrives as Solana continues to position itself as a venue for tokenized real-world assets and institutional financial applications.

CoinGecko’s Oct. 6 historical data shows SOL with a market capitalization of roughly $71.1 billion and about $2.65 billion in 24-hour trading volume. The previous day’s closing price was $120.76.

That means there is no clear evidence that the settlement announcement itself has produced a major price reaction in SOL. The launch is instead significant for the network’s longer-term institutional strategy.

The Foundation is now looking for additional design partners and early participants while it works toward a production release. The immediate test will be whether banks, custodians, exchanges and token issuers adopt the standard for real settlement activity.

If they do, the impact could extend beyond faster transfers. A widely adopted atomic settlement standard could reduce fragmented infrastructure and make it easier for institutions to build tokenized markets around a common settlement mechanism.

For Solana, that would represent a shift from competing primarily as a blockchain for crypto applications toward competing for a piece of the infrastructure underpinning institutional capital markets.

For financial institutions, meanwhile, the appeal is potentially simpler: fewer bespoke settlement systems, simultaneous delivery of assets and payment, and settlement that the Foundation says can happen in seconds rather than days.