Solana Foundation Launches Institutional Settlement Tool With Input From JP Morgan
The Solana Foundation has launched an open-source institutional settlement tool called Solana DvP, designed to eliminate multi-day settlement risks with advisory input from JPMorgan.
The Swiss nonprofit supporting the security, growth, and decentralization of the Solana blockchain, known as the Solana Foundation, introduced a new tool today designed to combat settlement risk. The feature enables banks and major financial institutions to execute trade settlements onchain within seconds, a process that typically requires one to two days in conventional markets.
Referred to as Solana DvP, the newly unveiled utility benefited from JPMorgan’s advisory input on its design. Although the bank provided guidance on securities settlement practices, it did not construct the utility, and the foundation’s press release explicitly notes that JPMorgan’s involvement was confined to sharing settlement expertise.
What Delivery Versus Payment Actually Means
Traditional finance trades often take longer to finalize than expected due to the various custodians, depositories, and clearinghouses that must process the transaction between two parties. Throughout this multi-day waiting period, a distinct vulnerability exists where one side might submit payment while the other fails to deliver. Delivery versus Payment, or DvP, removes this hazard by making the transfer conditional so that assets and funds move simultaneously.
Financial institutions have relied on DvP as the standard framework for securities settlement for over thirty years. Solana DvP applies this same concept by combining both sides of a trade into a single onchain transaction that achieves finality in seconds. Should an error occur on either end, the entire transaction is canceled.
“Atomic settlement removes counterparty risk that is inherent in traditional finance,” said Catherine Gu, head of product for digital assets at the Solana Foundation.
Previously, institutions completing trades onchain largely depended on customized smart contracts created specifically for individual deals. The foundation aims to eliminate this fragmentation by introducing an open standard. Licensed under the MIT open-source framework and available at no cost, the system allows counterparties to select any preferred settlement agent, including a bank or custodian.
JPMorgan’s Input Centered on Regulated Tokens
Issuers of regulated assets frequently require administrative capabilities missing from standard cryptocurrencies, such as the capacity to halt transfers during emergencies. Solana DvP accommodates the network’s Token-2022 and SPL Token standards, which feature transfer hooks, permanent delegates, and pausable token extensions. Consequently, an issuer can freeze assets or apply specific rules to any transfer without disrupting the operation of the settlement tool.
According to Rhodel D’souza, head of markets digital assets at JPMorgan, a unified open standard for atomic settlement represents the fundamental infrastructure major market participants require to scale operations without assuming counterparty exposure.
The foundation reports that the program has successfully completed independent security audits and stands ready to handle live funds. Subsequent updates will introduce privacy features to allow firms to maintain trade confidentiality, a capability frequently requested by institutions.
BlackRock and Kraken Already Run Tokenized Products on Solana
This launch expands Solana’s growing footprint in tokenized assets. BlackRock introduced a tokenized money market fund for stablecoin reserves in August, recording ownership on both Ethereum and Solana. Meanwhile, Kraken provides international customers with tokenized U.S. equities via its network-based xStocks product. Furthermore, JPMorgan facilitated a commercial paper transaction for Galaxy Digital on Solana in December 2025, which was settled using USDC.
Other blockchains are pursuing similar initiatives. JPMorgan’s Kinexys previously tested a cross-chain DvP trade alongside Ondo Finance, and ClearToken utilizes the Canton Network for DvP settlements, though both approaches depend to some extent on permissioned architectures. In contrast, Solana’s iteration operates on an entirely public chain, with the foundation currently onboarding design partners ahead of a broader production rollout.
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