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Solana unveils DvP for banks and funds: how simultaneous trade settlement works

Solana Foundation has unveiled DvP, an open tool for settling an asset and cash at the same time. How it works and its limits for regular users.

Digital finance graphics for a story about blockchain settlement

At a glance

  • Solana Foundation has launched Solana DvP, an open tool for settling trades
  • The asset and the payment move in one atomic operation: both legs or neither
  • The standard is built for banks and funds, not everyday transfers

Solana Foundation has unveiled Solana DvP, an open-source program for settlement on a delivery versus payment basis. Its job is to transfer the asset and the payment in a single atomic operation: both legs of the trade complete at the same time, or neither does. It’s designed for banks, custodians, exchanges and other financial institutions.

Why DvP is needed

In traditional trades, cash and securities can pass between parties through several intermediaries and not at the same moment. That creates a risk that one side has already met its obligation while the other hasn’t. DvP tries to close this gap by making both actions happen simultaneously in code. While developing the standard, Solana took into account consultations with J.P. Morgan on institutional requirements.

  • the tool is published as open source;
  • settlement is built as an atomic operation;
  • it provides isolated escrow and deadline controls;
  • the standard is meant primarily for institutions, not everyday transfers.

For a regular crypto holder, this is first and foremost infrastructure news: it shows how blockchain is being adapted to settlement between large players. It’s not advice to buy SOL or any other asset.

FAQ

What does delivery versus payment mean?

It’s a principle under which the asset and the payment change hands at the same time. If one leg of the trade fails, the other doesn’t go through either.

Can you use Solana DvP in a regular crypto wallet?

The tool is aimed at institutional trades. Access and use cases are determined by the specific institution or service.

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Author

Vasyl Vasyliev

Has been working on AppMaxx since 2019, writing reviews of smartphones, laptops and other gadgets, game and movie roundups, and how-tos on Windows and apps.

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