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The Solana Foundation released a delivery-versus-payment (DvP) tool on October 6, designed to execute asset movement and payment as a single atomic blockchain transaction. The software is available under the MIT licence and supports both SPL Token and Token-2022 assets.
Atomic Settlement Mechanics
Traditional settlement processes often involve moving a security and the corresponding payment in separate steps. This sequence creates a period of exposure where one party is waiting for the other to complete their side of the transaction. The Solana DvP tool addresses this by combining the two movements into one atomic transaction on the Solana blockchain.
The tool includes isolated escrow and time limits to manage the settlement process. By providing a reusable standard, the Foundation aims to prevent individual projects from building bespoke settlement contracts. This approach is intended for banks and other institutions looking to streamline the settlement of tokenised securities.
Institutional Input and Security
JPMorgan provided feedback on settlement practices during the development of the tool. The Solana Foundation’s disclaimer explicitly limits the nature of JPMorgan’s involvement, stating that the bank is not operating, certifying, or guaranteeing the software. JPMorgan’s role was limited to providing input on institutional requirements.
The programme has undergone external security reviews. However, the Foundation notes that broader production adoption and planned privacy features remain matters for future implementation. The tool targets the specific costs associated with tokenised securities, where the time between delivery and payment can create capital and counterparty costs.
Success of the DvP tool depends on factors beyond the smart contract itself, including legal finality, custody integrations, and how errors are handled. The open-source model aims to provide a foundation for institutions, but the integration of these broader settlement infrastructure components remains a key consideration for adoption.
Frequently Asked Questions
What assets does the Solana DvP tool support?
The tool supports SPL Token and Token-2022 assets. It is designed to make asset movement and payment part of one atomic blockchain transaction.
Is JPMorgan operating or guaranteeing the Solana DvP tool?
No, JPMorgan is not operating, certifying, or guaranteeing the software. The bank provided feedback on settlement practices and input on institutional requirements, as clarified by the Solana Foundation’s disclaimer.
