Institutional trading on-chain is moving from asset issuance to settlement.
On October 6, the Solana Foundation announced the launch of Solana DvP (Delivery-versus-Payment) program. This toolkit adopts the MIT open-source license, providing standardized APIs and custodial settlement mechanisms for financial institutions. JPMorgan participated in providing insights on the securities settlement process and institutional requirements.
The focus of this release is not to introduce another token, but to establish a reusable delivery standard for tokenized securities and their corresponding funds.
Assets and funds must arrive simultaneously
In traditional securities trading, the buyer needs to pay funds, while the seller needs to deliver securities. If either operation cannot be completed simultaneously, one party may bear the risk of the counterparty's inability to perform after having already delivered assets or funds.
Traditional finance usually manages this process through clearing agencies, custodial institutions, and settlement systems, but such operations may take one to two business days and tie up the funds of the participants.
Solana DvP employs a different execution method: both parties deposit the agreed assets and funds into corresponding custodial accounts, and upon meeting settlement conditions, the authorized settlement party triggers the transaction.
Both legs of the delivery are completed in the same on-chain transaction. Either the assets and funds are transferred simultaneously, or the entire settlement does not execute.
This is the core of "atomic settlement." It not only makes the transfer speed faster but also reduces the risk of unilateral performance from the transaction execution mechanism. The Solana Foundation claims that this solution can compress final settlement to seconds, rather than the days required in traditional processes.
Why do institutions need a unified standard?
Previously, institutions needed to develop customized smart contracts for specific business when conducting asset delivery on-chain. Differences in execution logic, custodial methods, and settlement rules among various projects increased development, integration, and risk management costs.
Solana DvP aims to consolidate these common needs into a universal program, reducing the repetitive development work for each institution.
This program supports SPL Token and Token-2022, including features like permanent authorization, transfer pauses, and transfer hooks. These capabilities help meet the requirements of regulated asset issuers regarding permission management and transfer control.
Theoretically, banks, custodial institutions, and trading platforms can all act as settlement service providers without needing to redesign a complete delivery mechanism for each transaction.
How far are we from widespread institutional adoption?
It should be noted that JPMorgan's participation in providing settlement requirements insights does not equate to the bank having officially adopted Solana DvP for large-scale trading.
As of this release, the Solana Foundation is still recruiting design partners in preparation for the promotion of the formal production environment. Although the program has been subject to external security audits and is claimed by the foundation to be usable with real funds, public information has not yet provided actual settlement data from large-scale production transactions.
Indicators to observe moving forward include whether any banks, custodial institutions, or asset issuers have officially connected; actual delivery volumes of tokenized securities and funds; and whether the unified standard can reduce costs for institutions connecting across systems.
What Solana DvP truly aims for is the settlement phase of institutional trading. As tokenized assets gradually enter bonds, funds, and other financial products, issuing assets is just the first step; whether transactions can be completed safely, synchronously, and standardized will also determine whether on-chain finance can scale.
If you are also interested in the Crypto market and want to trade or allocate assets, you can register through the following exclusive channels and enjoy discounts:
Binance: Register through the exclusive link, fill in the invitation code aicoin668, and enjoy a 10% rebate.
Registration link: https://jump.do/zh-Hans/xlink-proxy?id=3
Welfare group: https://www.aicoin.com/link/chat?cid=gmLgwvKD1
OKX: Register through AiCoin's exclusive link to enjoy a permanent 20% rebate.
Registration link: https://jump.do/zh-Hans/xlink-proxy?id=2
Welfare group: https://aicoin.com/link/chat?cid=l61eM4owQ
Bitget: Register through AiCoin's exclusive channel to enjoy a 10% fee rebate.
Registration link: https://jump.do/zh-Hans/xlink-proxy?id=6
Welfare group: https://aicoin.com/link/chat?cid=N63yYYKQ
You are also welcome to join AiCoin-related communities for more information on new coins and profit opportunities from exchanges:
Official Telegram community: https://t.me/aicoin_support
AiCoin Chinese Twitter: https://x.com/AiCoinzh
This article's content represents the author's personal views and does not reflect the platform's position. The views, conclusions, and suggestions in the text are for investors' reference only and do not constitute any investment advice related to the platform. The market has risks, and investments should be made cautiously.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
