Solana Foundation Offers Banks Open-Source Code to Settle Tokenized Trades in One Step

AI summary of the source article

The Solana Foundation announced Solana DvP, an open-source escrow program released under the MIT license to standardize onchain delivery-versus-payment settlements. The software executes both legs of a trade in a single transaction to eliminate counterparty risk and avoid the multi-day capital lockups common in traditional off-chain clearing. Settling is controlled by a designated third party such as a bank, custodian, or exchange. The program supports Token-2022 regulatory controls and has passed outside security audits. J.P. Morgan provided institutional input for the framework, although the release clarified the bank does not operate or endorse the program.

Why it matters

Atomic settlement removes counterparty risk and settlement delays inherent in traditional clearinghouses, providing institutional market participants with foundational infrastructure to trade tokenized assets at scale.

Key facts

• Solana DvP is an open-source escrow program under the MIT license that settles both legs of a trade simultaneously.
• The program supports Solana's Token-2022 controls and has undergone external security audits.
• J.P. Morgan provided input on institutional securities settlement but did not design, operate, or endorse the program.