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A securities trade has two sides that need to move together
When an institution buys a tokenized bond, fund share or another digital asset, neither side wants to move first. The buyer needs the asset before sending payment, while the seller needs payment before transferring the asset.
Traditional markets solve that problem through clearinghouses, depositories and custodians. Their controls reduce settlement risk, but the process can leave capital tied up for one or two days while ownership and payment are confirmed.
The Solana Foundation announced Solana DvP on October 6 as an open-source escrow program for delivery-versus-payment settlement. It is designed to place both sides of an on-chain trade into escrow, then exchange them through one transaction.
The settlement sequence
- Both parties agree the asset, payment amount, authority and deadline.
- Each side funds its own escrow with tokens.
- The named authority settles both transfers in one transaction. If that cannot happen, the e...
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