Solana Foundation open-sources the settlement method behind a $50 million Galaxy Digital note arranged by J.P. Morgan
Solana Foundation released free, MIT-licensed code that swaps tokenized securities for USDC in one atomic transaction, with finality in seconds. How far it reaches into T+1 and T+2 back offices depends on how many securities already exist as tokens with USDC on the other side.
The Investor · Invest desk
What happened
- J.P. Morgan arranged a $50 million commercial paper issue for Galaxy Digital on Solana on Dec. 11, 2025, using DvP for both issuance and redemption in USDC.
- The foundation said J.P. Morgan supplied input on institutional settlement practices that shaped the program's design.
- The code supports SPL Token and Token-2022, including the permanent delegate, pausable and transfer hook extensions regulated issuers use, and has undergone external security audits.
- Crypto Briefing reports that Morgan Stanley, BNY, State Street and Societe Generale have piloted or implemented workflows using Solana's capabilities.
Why it matters
- What it costs cost A second issuer copying the Galaxy structure no longer commissions a bespoke contract or negotiates a license, so its cost falls to integration and its own review of audited code.
- What it limits constraint Until the foundation adds the privacy features it says it plans, a bank has no way to keep a settlement through the program confidential, and that narrows what it will route there.
- Who has to decide decision Regulators have to say how on-chain finality maps onto legal definitions of a completed trade, and until they do, a bank using the program carries that legal question on every settlement.
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Crypto Briefing, citing the research behind the implementation, puts finality at around 400 milliseconds with very low fees [16], against one to two days for traditional settlement [11]. A day holds 86,400 seconds, or 216,000 of those windows [22]. The clock is the small part of the cost. Decrypt describes the conventional chain of clearinghouses, depositories and custodians as one that can tie up capital for a day or two [9]. The program frees that capital only on trades where the security is already a token and the payment is already USDC [15].
"Atomic settlement removes counterparty risk that is inherent in traditional finance," said Catherine Gu, the foundation's head of product for digital assets [6]. For the swap itself, that holds: both legs settle together or neither does [10]. The seller of the paper still leaves the trade holding USDC, so the risk of a counterparty failing to deliver is exchanged for exposure to the payment token. Crypto Briefing expects demand for USDC as a settlement asset to grow if more institutions settle this way [23]. The foundation gives the code away [3], and fees on the network are very low [16]. On this evidence, the party with the clearest revenue line from volume is the issuer of the cash leg.
The program could stay what it has been in public so far, an issuance and redemption tool for short-term corporate debt [14], where both ends of the instrument's life settle in USDC, as Galaxy's did [13]. It could instead pick up tokenized holdings that already sit on the chain. Decrypt calls Solana a leading venue for tokenized equities, with Kraken selling tokenized U.S. stocks to overseas customers through xStocks [19]. BlackRock records ownership of a tokenized money market fund for stablecoin reserves on Solana alongside Ethereum [18]. Or the December note could remain the one deal either outlet describes.
I think the first back offices to feel this handle commercial paper, and the clearing chain for listed stocks feels it later. The production record in these two accounts is one $50 million note [13], arranged by the bank that helped shape the code [1]. The counter-case is the equity venue. If tokenized stocks like Kraken's, or the BlackRock fund, start settling against USDC through the program in size, the pressure on T+1 and T+2 workflows arrives sooner than I expect, and this view is wrong. Rhodel D'souza, J.P. Morgan's head of markets digital assets, said a shared, open standard for atomic delivery-versus-payment is "exactly the kind of foundational infrastructure institutional market participants require" [4].
What to watch
- Whether J.P. Morgan, having shaped the design, arranges a second Solana note through the published program, or another issuer copies the Galaxy structure.
- Whether Morgan Stanley, BNY, State Street or Societe Generale says it settles a tokenized security on Solana in production.
- USDC settlement volumes tied to tokenized securities on Solana, the figure Crypto Briefing says to track in the months ahead.
Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence60
- Adoption15
- Hype gap+35
- Incentives65
- Confidence65
Perspective Coverage
9 publishers- Builder
- Builder 27%
- Operator
- Operator 40%
- Investor
- Investor 33%
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
The foundation said J.P. Morgan provided input on institutional settlement practices that shaped the design.
- [2]
The Solana Foundation launched Solana DvP, an open-source escrow program that gives financial institutions a standardized API for delivery-versus-payment settlement, announced Monday.
- [3]
Solana DvP is released under the permissive MIT license.
- [4]
Rhodel D'souza, J.P. Morgan's head of markets digital assets, said a shared, open standard for atomic delivery-versus-payment is "exactly the kind of foundational infrastructure institutional market participants require."
- [5]
The program supports SPL Token and Token-2022, including extensions regulated issuers depend on such as permanent delegate, pausable tokens and transfer hooks, and has undergone external security audits.
- [6]
"Atomic settlement removes counterparty risk that is inherent in traditional finance," said Catherine Gu, the foundation's head of product for digital assets.
- [7]
Gu said the program offers institutions a single open standard "with finality in seconds instead of days."
- [8]
The program aims to bring the settlement guarantee to public blockchain infrastructure as a reusable standard, replacing the bespoke smart contracts institutional trades have typically relied on.
- [9]
In conventional markets, delivery-versus-payment runs through a multi-day chain of clearinghouses, depositories and custodians that can tie up capital for a day or two.
- [10]
Solana DvP compresses settlement into a single atomic transaction, where both legs settle together or neither does.
- [11]
Traditional settlement can take one to two days.
- [12]
The foundation said it plans to add privacy features so settlements can be kept confidential.
- [13]
On December 11, 2025, J.P. Morgan arranged a $50 million commercial paper issuance for Galaxy Digital Holdings LP on the Solana blockchain; the deal used the DvP functionality to handle both issuance and redemption in USDC.
- [14]
Commercial paper is short-term corporate debt, typically used to fund day-to-day operations.
- [15]
The reference implementation handles the simultaneous exchange of a tokenized security, such as commercial paper, against a payment in USDC.
- [16]
The research behind the implementation describes atomic execution in under one second; finality on Solana lands at around 400 ms, with very low transaction fees.
- [17]
The risks are mostly operational and regulatory; regulators will want clarity on how on-chain finality maps onto existing legal definitions of a completed trade.
- [18]
BlackRock in August launched a tokenized money market fund for stablecoin reserves that records ownership on Solana alongside Ethereum, structured to qualify as a reserve asset under the GENIUS Act.
- [19]
Kraken has used Solana to offer tokenized U.S. stocks to overseas customers through its xStocks product; Solana has emerged as a leading venue for tokenized equities.
- [20]
Releasing the DvP program as open-source lowers the barrier for institutions to inspect the code, adapt it and run it without negotiating a proprietary license first.
- [21]
Morgan Stanley, BNY, State Street and Societe Generale are among those that have piloted or implemented solutions using Solana's capabilities for asset workflows.
- [22]
One day of traditional settlement contains about 216,000 windows of 400-millisecond Solana finality.
- [23]
If more institutions settle tokenized securities against USDC, demand for USDC as a settlement asset could grow, since it is the payment leg in these trades.
Sources
9 independent publishers whose own reporting we read for this story.
- coindesk.comSolana Foundation unveils a program to settle institutional trades in seconds. JPMorgan gave input
1 article · October 5, 2026
- cointelegraph.comSolana Foundation targets settlement in seconds with DvP launch
1 article · October 6, 2026
- crypto.newsSolana launches tool to settle bank trades in seconds
1 article · October 6, 2026
- cryptobriefing.comSolana launches open-source DvP program for institutional trade settlement
1 article · October 5, 2026
- cryptopolitan.comSolana Foundation Launches Institutional Settlement Tool With Input From JP Morgan
1 article · October 5, 2026
- cryptoslate.comSolana DvP settlement requires 100% upfront cash for every trade
1 article · October 6, 2026
- decrypt.coSolana Debuts Institutional Settlement Standard With J.P. Morgan Input
1 article · October 5, 2026
- news.bitcoin.comJPMorgan Lends Its Expertise to Solana’s Atomic Settlement Program
1 article · October 6, 2026
- thepaypers.comSolana Foundation launches DvP settlement program for institutions
1 article · October 7, 2026
Topics and entities
Topics
- Delivery-versus-payment settlement
- Tokenized Real-World Assets
- Stablecoin Settlement Rails