Solana Policy Institute Proposes Tokenized Securities on Public Blockchains

Written byCoin World
Thursday, Jun 19, 2025 12:40 am ET1min read

The Solana Policy Institute (SPI) has unveiled a groundbreaking proposal named “Project Open,” aimed at modernizing U.S. markets by bringing tokenized securities to public blockchains. This initiative seeks to integrate traditional assets such as stocks, bonds, and funds into a regulated, on-chain environment, leveraging the benefits of real-time settlement, 24/7 trading access, and reduced operational costs.

The proposal, submitted to the U.S. Securities and Exchange Commission (SEC), outlines an 18-month pilot program designed to test the feasibility of blockchain-based securities. The core concept involves tokenizing real-world assets into “Token Shares,” which would be issued and managed via smart contracts on public blockchains like Solana. Superstate, an SEC-registered asset manager and a key participant in the coalition, would be responsible for issuing these tokenized securities.

One of the standout features of Project Open is its commitment to regulatory compliance. Orca, a decentralized exchange and coalition partner, will integrate Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols directly into its platform. This approach eliminates the need for intermediaries like brokers or clearinghouses, enabling instant settlements and reducing costs associated with entities such as the DTCC. Wallet provider Phantom is also involved in ensuring user interactions remain compliant.

The proposal argues that decentralized, non-custodial systems like automated market makers (AMMs) do not take possession of user funds, differentiating them from traditional financial intermediaries. On this basis, the SPI is requesting “exemptive relief” from the SEC to prevent these automated protocols from being classified as exchanges, brokers, or clearing agencies under existing law. The law firm Lowenstein Sandler is providing legal expertise for the initiative.

Project Open is part of a broader industry trend where major financial and tech firms are exploring asset tokenization. In March 2025, derivatives marketplace

announced a partnership with Cloud to trial the tokenization of assets. Similar efforts by firms such as Ondo Finance and Converge underscore the growing institutional interest in using blockchain infrastructure for traditional finance. However, skeptics question whether public blockchains like Solana can provide the necessary security and scalability for high-volume capital markets. The proposed 18-month pilot aims to address these concerns by testing the framework in a controlled, regulated environment.

Sign up for free to continue reading

Unlimited access to AInvest.com and the AInvest app
Follow and interact with analysts and investors
Receive subscriber-only content and newsletters

By continuing, I agree to the
Market Data Terms of Service and Privacy Statement

Already have an account?

Comments



Add a public comment...
No comments

No comments yet