Solana Foundation Launches Institutional Settlement Tool With Input From JP Morgan
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The Solana Foundation, the Swiss nonprofit that supports the decentralization, growth and security of the Solana blockchain, launched a tool today that aims to tackle settlement risk by letting banks and large financial institutions settle trades onchain in seconds. In traditional markets, the same trade usually can take up to one or two days to fully settle.
The tool unveiled by the foundation is called Solana DvP. JPMorgan advised on how it should work, though the bank did not build it, and the foundation’s press release is clear that its role was limited to sharing settlement expertise.
What Delivery Versus Payment Actually Means
In traditional finance, settling a trade can take longer than most people would expect. There are clearinghouses, depositories and custodians that a trade between two parties have to go through before a deal is actually done, which is why this can take a couple of days. During this waiting period, there is a risk that one party pays and the other fails to deliver. Delivery versus Payment or short for DvP, essentially makes the exchange conditional, so the asset only moves if the payment moves at the same time.
Banks have used DvP as the standard model for settling securities for more than three decades. Solana DvP uses the same principle and puts both sides of the trade into one onchain transaction with finality in seconds. If anything goes wrong on either side, nothing settles.
“Atomic settlement removes counterparty risk that is inherent in traditional finance,” said Catherine Gu, head of product for digital assets at the Solana Foundation.
Until now, institutions settling trades onchain have mostly relied on custom smart contracts built for each deal. The foundation wants to remove this fragmentation and replace it with an open standard. It’s open source under the MIT license and free to use, and counterparties can bring any settlement agent they like, including a bank or a custodian.
JPMorgan’s Input Centered on Regulated Tokens
Regulated issuers often need controls that ordinary crypto tokens lack, such as the power to pause transfers in an emergency. Solana DvP supports the network’s SPL Token and Token-2022 standards, including extensions for pausable tokens, permanent delegates and transfer hooks. Put simply, an issuer can freeze a token or attach rules to every transfer and the settlement tool still works.
Rhodel D’souza, head of markets digital assets at JPMorgan, said a shared open standard for atomic settlement is the sort of base infrastructure big market players need to scale without taking on counterparty exposure.
The foundation says the program has passed external security audits and is ready for real funds. Privacy features are planned next so firms can keep trade details confidential. Institutions have been asking for exactly that.
BlackRock and Kraken Already Run Tokenized Products on Solana
The launch adds to Solana’s growing tokenized asset business. In August, BlackRock launched a tokenized money market fund for stablecoin reserves that records ownership on Solana alongside Ethereum. Kraken offers tokenized U.S. stocks to overseas customers through its xStocks product on the network. JPMorgan itself arranged a commercial paper deal for Galaxy Digital on Solana in December 2025, settled in USDC.
Solana isn’t the only chain chasing this business. JPMorgan’s Kinexys has tested a cross-chain DvP trade with Ondo Finance, and ClearToken runs DvP settlement on the Canton Network. Both rely on permissioned systems to some degree. Solana’s version sits on a fully public chain, and the foundation is now inviting design partners ahead of a full production release.
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