Solana Launches New Tool for Faster Institutional Trades
Solana has released open-source software for tokenized trades where the asset and payment can settle together in seconds, provided both already exist on its blockchain.
A securities trade has two sides that need to move together
When an institution buys a tokenized bond, fund share or another digital asset, neither side wants to move first. The buyer needs the asset before sending payment, while the seller needs payment before transferring the asset.
Traditional markets solve that problem through clearinghouses, depositories and custodians. Their controls reduce settlement risk, but the process can leave capital tied up for one or two days while ownership and payment are confirmed.
The Solana Foundation announced Solana DvP on October 6 as an open-source escrow program for delivery-versus-payment settlement. It is designed to place both sides of an on-chain trade into escrow, then exchange them through one transaction.
The settlement sequence
- Both parties agree the asset, payment amount, authority and deadline.
- Each side funds its own escrow with tokens.
- The named authority settles both transfers in one transaction. If that cannot happen, the exchange does not go through.
That all-or-nothing result is called atomic settlement. Solana Foundation Head of Product for Digital Assets Catherine Gu described the program as “one open standard across the Solana ecosystem” with finality in seconds instead of days.
A shared process could replace one-off settlement builds
Once both sides can settle together, the next question is whether every institution has to build that process from scratch. Solana DvP is designed as reusable code for that job, allowing a bank, custodian, exchange or trading venue to integrate one common escrow model.
The program supports SPL Token and Token-2022 assets, including features used by issuers that need transfer and compliance controls. Those features may help institutions operate tokenized assets, while leaving issuers with powers that counterparties need to assess before a trade settles.
The technical documentation lays out the workflow in more detail. The parties record the terms, fund their separate escrow accounts with ordinary token transfers, and the settlement authority signs the transaction that exchanges the two legs. A wallet or custodian able to send a standard token transfer can fund a leg without building a separate DvP function.
That convenience does not remove the need for verification. Anyone can create a trade record, so the parties need to check the stored assets, amounts, destination addresses, expiry and settlement authority before funding either escrow.
JPMorgan supplied input, not a commitment to use the program
JPMorgan’s role is the detail most likely to be overstated. The bank gave Solana Foundation input on institutional settlement practices and requirements while the program was being developed.
“We were pleased to contribute our settlement expertise.” – Rhodel D’Souza, Head of Markets Digital Assets at J.P. Morgan
Solana’s release states that JPMorgan did not design, develop, operate, approve, endorse or guarantee Solana DvP. The announcement shows that the bank contributed settlement expertise; it does not confirm a JPMorgan deployment or a live institutional trade through the program.
Faster settlement depends on what sits inside the trade
The promised speed applies only when both sides of the trade are tokens on Solana. A cash payment that remains in a conventional bank account follows a separate settlement process and still needs reconciliation afterward.
- The settlement authority remains important
- A third address, named when the trade is created, must sign the final transaction. The program does not independently decide when to settle.
- Token controls remain in place
- An issuer with pausing, freezing or permanent-delegate powers can still affect the tokens held in escrow.
- Legal finality needs separate agreement
- A finalized blockchain transaction confirms the transfer on Solana. Whether it also settles the parties’ legal obligations depends on their contract and the rules governing the trade.
The trade terms and token controls are only part of the due diligence. Institutions would also need to assess the program itself, which the documentation lists as upgradeable on mainnet, along with its audit history and the governance around future changes. The program’s external audit provides one piece of that review.
The next evidence will come from regular use
Solana already has tokenized-asset activity, although the market remains concentrated. Our analysis of Solana’s RWA and payments growth found that relatively few issuers and venues accounted for much of the activity. A shared settlement program could make participation easier for more firms, yet it does not create the tokenized assets, payment tokens or legal agreements that an institutional trade requires.
Solana Foundation says the program has been externally audited and can be used with real funds while it seeks design partners ahead of a wider production rollout. The next meaningful proof will be recurring trades by named institutions, with tokenized assets, on-chain payment and a clearly defined settlement authority all working together.
For now, Solana DvP gives institutions code they can test for a specific task: exchanging a tokenized asset for an on-chain payment without either side moving first.
This article is for informational purposes only and does not constitute investment, legal or financial advice. Tokenized assets and their settlement arrangements may involve legal, operational, custody and issuer risks.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
