Solana DvP settlement aims to cut 1-2 day trades to seconds

The Solana Foundation released Solana DvP at 10 p.m. ET on Oct. 5, an open-source program that aims to settle institutional trades in seconds instead of 1-2 days.

The quick take

Price: $SOL at $120.49, +0.5% in 24 hours as of 1:41 p.m. ET (CoinGecko, cross-checked with Jupiter).
Trigger: The Solana Foundation released an audited, open-source program for delivery-versus-payment settlement.
Watch: Which bank, custodian or exchange runs the first live trades through it.

Solana ($SOL) has a new tool for banks: the Solana Foundation launched Solana DvP settlement software late on Oct. 5. It aims to finish institutional trades in seconds, while traditional settlement often takes one to two days.

What happened

The foundation announced the program in a press release dated 10 p.m. ET on Oct. 5 (02:00 UTC on Oct. 6). DvP stands for delivery versus payment. The asset and the money move in one transaction, so either both sides settle or nothing happens.

The code is open source under the MIT license. It works with Solana’s SPL Token and Token-2022 standards, keeps funds in isolated escrow accounts and enforces deadlines. The foundation says outside security audits are complete and the program is ready for production use.

Its product page names Cantina as the auditor. Any settlement agent, such as a bank, custodian or exchange, can connect to it through an open API.

J.P. Morgan shared input on how institutions settle trades, according to the release. The release adds that the bank did not design, build, run, approve or endorse the product. CoinDesk reported that the input covered deadlines, escrow isolation and Token-2022 features such as pausable tokens.

“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, CoinDesk noted, institutions often paid for custom smart contracts for each onchain trade.

What to watch next

The real test is adoption: watch for the first firm to settle live trades with the program. The foundation also plans privacy features for confidential settlement.

Solana already hosts tokenized assets that a tool like this could settle. Decrypt pointed to BlackRock’s tokenized money market fund, launched on Solana and Ethereum in August, and Kraken’s xStocks. Solana’s DeFi deposits stood at $6.6 billion at 1:41 p.m. ET, per DefiLlama.

Bottom line: Solana now offers institutions an open, audited settlement standard, but its weight depends on who uses it first.