Solana Moves Deeper Into Wall Street With Atomic Settlement System

The Solana Foundation announced an open-source program, Solana DvP, that lets institutions settle trades in seconds rather than days. Global banking firm JPMorgan contributed to the build, providing institutional settlement practices, with devs stressing compliance.

Solana Debuts Single Atomic Transactions

The open-source program will give banks an alternative for settling transactions on the network through a standardized API. According to the foundation, payments now exchange hands with ease, removing previous bottlenecks.

Institutions have tested the waters with smart contract trades that generated buzz due to industry leanings toward tokenization. However, Solana DvP was released under the MIT license and created a réusable standard.

Catherine Gu, Solana’s Foundation Head of Products for Digital Assets, said atomic technology removes counterparty risk and cuts settlement times from days to seconds. JP Morgan, which contributed to the project, lauded the program as key for institutional growth in any system.

This occurs because Solana DvP compresses the full chain into one atomic transaction. The key is that transactions either go through and settle, or neither ends proceeds.

In traditional markets, it passes through a chain of custodians and clearing houses that extends settlement times. 

“Atomic settlement removes counterparty risk that is inherent in traditional finance… with finality in seconds instead of days,” Gu added.

For most users, this approach is pivotal for both traditional finance players and the crypto markets. TradFi gets faster blockchain settlements, while crypto, particularly Solana, gains institutional exposure.

Since the approval of spot Bitcoin ETFs in the United States, altcoin popularity spiked as investors hoped for a similar successful run. The SEC’s green light opened these markets to a new wave of investment, building infrastructure that ultimately serves both markets.

Solana, popularly dubbed an institutional favorite, has bagged strings of positive inflows even when Bitcoin and the wider market were in liquidation mode.

In the same period, Solana has recorded mainstream successes in traditional markets. The digital asset exchange Kraken used the network to offer tokenized stocks to clients, while BlackRock rolled out a tokenized fund that records ownership on Solana.

At the time of writing, Solana trades at $107, down slightly with the broader crypto market.