When a bank or fund trades a security, the rule known as delivery-versus-payment means the security and the money are exchanged together, so one party can't pay and get nothing back. Off-chain, a series of clearinghouses, depositories and custodians provides that guarantee, a process the Solana Foundation says keeps capital tied up for one to two days.
For trades that settle onchain, institutions have typically relied on bespoke smart contracts, the foundation said. Late Monday, it announced Solana DvP, an escrow program meant to be one shared settlement standard for the network. Its code is open source under the MIT license.
The program moves both legs of a trade in a single transaction. Either the asset and the payment settle together, or the trade does not happen.
"Atomic settlement removes counterparty risk that is inherent in traditional finance," Catherine Gu, head of product for digital assets at the Solana Foundation, said in the release.
How a Trade Settles
A seller and a buyer agree on amounts of two tokens, one for the asset and one for the cash. Each side funds its own escrow account with an ordinary token transfer, so custodians need no special integration. Settling is reserved for a third party named when the trade is set up, which the foundation said could be a bank, a custodian or an exchange, and it releases both legs at once, according to the program's documentation. Either side, or that third party, can cancel and return the deposits, and the trade cannot settle once its deadline passes.
It supports Solana's standard token formats, including Token-2022 controls regulated issuers use, such as pausing a token. The foundation said the program has been through outside security audits and is "ready for use with real funds." It also plans to make settlement details private, and it is seeking design partners ahead of a production release.
J.P. Morgan's Role
J.P. Morgan gave the foundation input on how institutions settle securities. The release said that involvement was limited to input and does not mean the bank designed, operates or endorses the program.
"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," J.P. Morgan's head of markets digital assets, Rhodel D'souza, said in the release.
The bank has worked on tokenized-asset settlement before. In December 2025, it arranged Galaxy Digital's first commercial paper issuance, on Solana, creating the token and facilitating delivery-versus-payment when Coinbase and Franklin Templeton bought the debt at issuance. In May, its Kinexys unit handled the dollar leg of a cross-border redemption of Ondo's tokenized Treasury fund, whose tokens moved on the XRP Ledger.
