Solana Foundation launches atomic settlement program for Solana

Solana Foundation said on Oct. 5 it launched Solana DvP, an open-source escrow program for financial institutions to settle assets and payments together on Solana. The Foundation’s announcement describes it as a reusable delivery-versus-payment standard; SolanaFloor’s report on the launch also notes J.P. Morgan’s input on settlement practices.

How does Solana DvP settle a trade?

The program puts both sides of a trade into one atomic transaction: the asset and payment transfer together, or neither moves, according to the Foundation. It uses isolated escrow and settlement deadlines. The Foundation says the design aims to provide finality in seconds, compared with the one to two days it says traditional settlement can tie up capital.

The program is released under the MIT license. The Foundation says counterparties can work with any settlement agent, including a bank, custodian or exchange, rather than relying on separate bespoke contracts for each trade.

Which tokens does the program support?

Solana DvP supports SPL Token and Token-2022, including extensions such as pausable tokens, permanent delegates and transfer hooks, the announcement says. These features are used in tokens with controls that regulated issuers may require.

J.P. Morgan provided input on securities settlement practices and institutional requirements. The Foundation’s release says that involvement was limited to input and does not mean the bank designed, developed, approved or endorsed the program.

When can institutions use Solana DvP?

The Foundation says the program has undergone external security audits and is ready for use with real funds, but it is still seeking design partners and early participants ahead of a production release. The Foundation also plans to add privacy features for confidential settlements.

Sources and documents

• Foundation’s announcement — prnewswire.com
• SolanaFloor’s report on the launch — solanafloor.com