Solana Foundation unveils a program to settle institutional trades in seconds. JPMorgan gave input
The Solana Foundation has launched an open-source program called Solana DvP to enable near-instant institutional trade settlements. Developed with input from JPMorgan, the tool aims to replace slow, multi-day traditional clearing processes with atomic on-chain transactions.
Why it matters
This development represents a significant step in integrating blockchain technology with traditional finance to reduce counterparty risk and capital inefficiency.
On Oct. 6, the Foundation unveiled Solana DvP, an open-source delivery-versus-payment program that lets institutions settles trades “atomically on-chain,” with finality in seconds instead of days.
In traditional markets, assets and cash move through a chain of clearinghouses and custodians over one to two days, tying up capital and leaving room for principal risk. Solana DvP compresses these multiple legs into a single atomic transaction, such that both legs settle together, or neither does.
In plain English, institutions no longer have to trust the counterparty to deliver later. The trade either completes in full instantly, or it doesn’t happen at all, eliminating the risk of one party defaulting after receiving the asset or the cash as a part of the trade.
The DvP program also replaces the patchwork that institutions currently face when settling trades on-chain, where they’ve had to commission custom, one-off smart contracts for each deal.
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