- The Solana Foundation has introduced a Delivery-versus-Payment (DvP) program designed to offer an open, public standard for institutional atomic settlement.
- J.P. Morgan contributed institutional settlement insights to shape requirements, including escrow isolation and compliance features under Solana’s Token-2022 standard.
- The program aims to transition institutional tokenization initiatives from isolated trials into repeatable, large-scale financial operations.
Solana Foundation Launches Delivery-versus-Payment Program for Institutional Settlement
The Solana Foundation has rolled out a new Delivery-versus-Payment (DvP) program to streamline how institutional market participants clear and settle tokenized assets on public blockchain infrastructure. By facilitating atomic settlement, the protocol is structured to complete transactions in seconds rather than the traditional multi-day clearing windows typical of legacy capital markets, directly mitigating the friction and exposure associated with delayed finality.
“Atomic settlement removes counterparty risk that is inherent in traditional finance. Solana DvP program provides institutions with one open standard across the Solana ecosystem, on public infrastructure, with finality in seconds instead of days,”
Catherine Gu, head of product, Digital Assets, Solana Foundation, said in a press release shared with CoinDesk.
J.P. Morgan Informs Architecture and Token-2022 Compliance Features
The initiative incorporates substantial input from Wall Street investment bank J.P. Morgan, which provided decades of institutional settlement data and operational background. This guidance helped define technical and operational requirements surrounding transaction deadlines, escrow isolation, and regulated issuer compliance. These capabilities leverage Solana’s Token-2022 standard, which incorporates specialized token extensions such as transfer hooks and pausable tokens—mechanisms that give administrators the ability to trigger an emergency stop and freeze token transfers when legally or operationally required.
“A shared, open standard for atomic delivery-versus-payment is exactly the kind of foundational infrastructure institutional market participants require to operate at scale without introducing settlement risk and counterparty exposure. We were pleased to contribute our settlement expertise,”
Rhodel D’souza, head of markets digital assets at J.P. Morgan, said.
From Isolated Tokenization Pilots to Standardized Market Infrastructure
Solana has previously supported institutional tokenization initiatives, including a transaction arranged by J.P. Morgan for Galaxy Digital involving commercial paper settled using the USDC stablecoin. By establishing an open, audited DvP standard across the broader network, market participants aim to shift these standalone deployments into recurring institutional operations, decreasing counterparty exposures and the overhead costs tied to on-chain asset transfers.
Why This Matters
The expansion of tokenized real-world assets (RWAs) on public blockchains relies heavily on institutional certainty regarding settlement finality and risk mitigation. Traditional clearing mechanisms often involve multi-day settlement cycles, introducing continuous counterparty risk during the window between asset transfer and payment receipt. By implementing a standardized atomic DvP framework supported by institutional banks like J.P. Morgan, public networks can satisfy stringent regulatory and operational requirements, lowering friction costs and establishing a viable runway for regulated financial instruments to scale on public ledgers.
Frequently Asked Questions
What is the Solana DvP program?
The Solana DvP program is an open, standardized framework built on the Solana public blockchain that enables atomic Delivery-versus-Payment. It ensures that the transfer of an asset and its corresponding payment occur simultaneously within seconds, eliminating settlement delays.
How was J.P. Morgan involved in the project?
J.P. Morgan contributed decades of traditional settlement expertise to the initiative. The investment bank helped define key technical requirements, such as escrow isolation, transaction deadlines, and compliance token extensions under Solana’s Token-2022 standard.
What are pausable tokens within this architecture?
Pausable tokens are crypto tokens developed with an emergency-stop function. This feature allows designated administrators to temporarily halt or freeze token transfers when compliance, regulatory, or operational needs arise.
