Solana Foundation Releases Atomic Settlement Tool for Institutions

The Solana Foundation announced Solana DvP on Oct. 6, an open-source escrow program for delivery-versus-payment settlement on Solana that aims to move institutional trades into a single atomic transaction. The Foundation’s announcement says the MIT-licensed program provides an API for financial institutions.

How does Solana DvP settle a trade?

Solana DvP is designed to transfer an asset and its payment together, so either both legs settle or neither does. The Foundation says the program uses isolated escrow and enforces deadlines, with settlement finality in seconds.

The Foundation said traditional securities settlement can tie up capital for one to two days as trades move through clearinghouses, depositories and custodians. It said DvP aims to compress that process into one transaction; this is the program’s stated goal, not a reported performance result.

Which tokens and settlement agents does it support?

The program supports SPL Token and Token-2022, including extensions such as permanent delegate, pausable tokens and transfer hooks, according to the Foundation. It says counterparties can use a bank, custodian or exchange as settlement agent.

J.P. Morgan provided input on institutional settlement practices and requirements, the Foundation said. Its announcement clarifies that the bank’s involvement was limited to that input and does not mean it designed, operates or endorses the program.

When will institutions be able to use it?

The Foundation said Solana DvP has undergone external security audits and is ready for use with real funds. It did not give a production release date.

The Foundation is seeking design partners and early participants ahead of that release. It also said it plans to add privacy features for confidential trade settlements.

Source material

• Foundation’s announcement — solana.com