Solana, one of the largest altcoins in the market, is preparing to launch an open-source program that will allow institutions to complete their transactions in seconds instead of days, making a direct move into corporate finance.
Solana and JPMorgan Make New Moves for Corporate Transactions!
Accordingly, the Solana Foundation announced the launch of Solana’s Delivery-to-Payment (DvP) system, a new open-source payment tool for financial institutions. This system enables the simultaneous settlement of tokenized assets and payments in a single blockchain transaction, reducing payment times from days to seconds.
According to the statement, this system, developed with contributions from JP Morgan, aims to mitigate counterparty risks, such as one party making a payment but not receiving the corresponding asset.
“The Solana Foundation, a non-profit organization dedicated to the decentralization, growth, and security of Solana, today announced Solana DvP, an open-source escrow program that provides financial institutions with an open-source API for payment-on-delivery on Solana.”
Until now, companies have mostly used separate, private smart contracts for their transactions. Payments and asset transfers were carried out through various intermediaries such as clearing houses, custodians, and trustees. These processes could take one to two days to complete.
In contrast, Solana DvP, developed by the Solana Foundation, aims to solve this problem using an atomic settlement method. Thanks to this system, payment and asset transfer occur simultaneously within the same transaction. If one party fails to fulfill its obligation, the transaction is not completed, and the other party is not obligated to make the payment. Thus, the goal is to reduce transaction time from days to seconds and to minimize the risk of parties failing to fulfill their obligations.
JPMorgan’s Role is Limited!
According to the Solana Foundation, JPMorgan provided reconciliation expertise to shape the project to meet corporate needs. However, the foundation explicitly states that the bank did not design, develop, operate, or approve Solana DvP. In this respect, the bank’s role was advisory rather than operational.
*This is not investment advice.
