- Project Open aims to bring tokenized U.S. securities to public blockchains like Solana.
- Orca’s on-chain KYC/AML may eliminate intermediaries like brokers and the DTCC.
- SPI requests regulatory exemptions to keep DeFi platforms non-custodial and compliant.
A coalition of crypto firms led by the Solana Policy Institute (SPI) has submitted a formal proposal to the U.S. Securities and Exchange Commission (SEC) to establish a pilot program for issuing and trading tokenized securities on public blockchains. The initiative, named “Project Open,” aims to demonstrate how traditional assets like stocks, bonds, and funds can operate within a regulated, on-chain environment.
The proposal, which was formally delivered to the SEC’s Crypto Task Force on April 30, 2025, with follow-up letters sent this week, outlines an 18-month pilot designed to test the feasibility of blockchain-based securities. The project emphasizes benefits such as real-time settlement, 24/7 trading access, and significantly reduced operational costs.
Details of ‘Project Open’
At the core of the proposal is the concept of tokenizing real-world assets into “Token Shares.” These digital securities 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 the tokenized securities.
Related: Solana’s Meme Coin Boom: Here’s What’s Pumping in June
What sets this initiative apart is its commitment to maintaining regulatory integrity. Orca will integrate Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols directly into its platform. This approach removes the need for middlemen like brokers or clearinghouses, enabling instant settlements and eliminating costly intermediaries such as the DTCC.
A Framework for On-Chain Compliance
A key component of Project Open is its approach to regulatory compliance. The decentralized exchange Orca, another coalition partner, would handle the trading of these tokenized assets and would integrate Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols directly into its platform. Wallet provider Phantom is also involved in ensuring user interactions are compliant.
The proposal argues that because decentralized, non-custodial systems like automated market makers (AMMs) do not take possession of user funds, they function differently than 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.
Related: SEC’s Latest Action on Solana ETFs Now Mirrors the “Final Phase” of Approval
Broader Industry Push for Tokenization
The Project Open proposal is part of a growing trend of major financial and tech firms exploring asset tokenization. In March 2025, derivatives marketplace CME Group announced a partnership with Google Cloud to trial the tokenization of assets. Similar efforts by firms such as Ondo Finance and Converge also highlight the increasing institutional interest in using blockchain infrastructure for traditional finance.
Despite the growing momentum, the concept is not without its critics. Skeptics raise concerns about whether public blockchains like Solana can provide the robust security and consistent scalability required to support the demands of high-volume capital markets. The proposed 18-month pilot is designed to address these questions by testing the framework in a controlled, regulated environment.
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