Tokenizing Traditional Equity: Solana Company's Strategic Move to Onchain Capital Markets

Regulated onchain equity tokenization is unlocking new avenues for institutional investors. The launch of QCDT, the world's first DFSA-approved tokenized money market fund (MMF), exemplifies this shift. Co-developed by Qatar National Bank, DMZ Finance, and Standard Chartered, QCDT allows institutions to leverage tokenized MMF units as collateral on platforms like Bybit, enabling up to $1 billion in borrowing capacity, CoinPaper reports. This innovation bridges TradFi and DeFi by offering institutional-grade yield strategies with the security of blockchain-based settlement. For instance, Bybit's acceptance of QCDT as margin collateral, BitcoinWorld, demonstrates how tokenized assets can enhance capital efficiency, reducing the need for over-collateralization in trading.

Moreover, Solana's infrastructure supports real-time settlement and 24/7 trading, as seen in Solana Company's plan to tokenize HSDT shares. This eliminates the delays inherent in traditional equity markets, where settlement can take days. By preserving regulatory compliance while accelerating liquidity, Solana is positioning itself as a preferred platform for institutional-grade RWA tokenization, as StockTitan reports.

Retail Investors: Fractional Ownership and Regulated Access

For retail investors, tokenized equities and ETFs are democratizing access to previously illiquid or high-value assets. Backed's xStocks line of products, which tokenizes traditional equities into freely transferable ERC-20 and SPL tokens, enables fractional ownership of shares in global companies, PR Newswire reports. These tokens are fully backed 1:1 by their underlying securities, offering transparency and programmability. Similarly, Spain's CaixaBank and its digital subsidiary Imagin have launched regulated Bitcoin ETPs, providing retail investors with a compliant entry point into crypto markets without the complexities of managing private keys, FinanceFeeds reports.

The benefits extend beyond accessibility. Tokenized assets reduce barriers to entry by enabling micro-investments, while smart contracts automate dividend distributions and voting rights. For example, Figure Technology's $YLDS stablecoin, minted on Solana, offers yield-generating utility for DeFi applications, further expanding retail participation in onchain yield strategies, StockTitan reports.

Solana's Growth: Metrics and Market Momentum

Solana's RWA market is approaching $1 billion in 2025, driven by its hybrid consensus model (Proof of Stake and Proof of History) and sub-second settlement speeds, ScalingX notes. The platform's stablecoin ecosystem has grown from $5.2 billion in late 2024 to $16 billion in 2025, making it the third-largest stablecoin network after Ethereum and Tron, ScalingX notes. This expansion is supported by partnerships with Visa, Stripe, and PayPal, which are integrating Solana into global payment systems, ScalingX notes.

Comparatively, Solana's 65,000 TPS and $0.0005 transaction costs outpace Ethereum's 15–30 TPS and higher gas fees, making it ideal for high-throughput tokenization use cases, Ledger notes. While Ethereum's modular design offers flexibility for complex financial instruments, Solana's monolithic architecture prioritizes speed and cost efficiency, appealing to projects requiring real-time execution, Ledger notes.

Challenges and Risks

Despite its promise, onchain equity tokenization faces regulatory scrutiny and technical risks. For instance, tokenized assets must navigate evolving compliance frameworks, such as MiFID II in Europe, FinanceFeeds reports. Additionally, custodial risks-exemplified by the volatility of crypto-backed ETPs-require robust safeguards, FinanceFeeds reports. Institutions must also address the centralization of Solana's validator set, which could pose security concerns, Ledger notes.

Conclusion: A New Era for Capital Markets

Solana Company's strategic move to tokenize HSDT shares reflects a broader industry shift toward onchain capital markets. By combining TradFi's regulatory safeguards with blockchain's efficiency, platforms like Solana are redefining liquidity, fractional ownership, and accessibility for both institutional and retail investors. As the RWA market matures, the interplay between speed, compliance, and innovation will determine which blockchains emerge as leaders in this next trillion-dollar wave of financial transformation, as PR Newswire notes.