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A coalition of crypto organisations, including the Solana Policy Institute, Superstate, and others, has proposed a new pilot program to the U.S. Securities and Exchange Commission (SEC). The initiative, called “Project Open,” aims to tokenise publicly traded stocks on a public blockchain.
Solana Coalition Proposes Tokenisation Pilot to SEC
According to the letter submitted to the SEC, the pilot program will last 18 months and involve experimenting with the issuance and trading of tokenised versions of securities. The main objective of the initiative is to demonstrate that current securities regulations can become more transparent and efficient through blockchain technology.
The coalition also includes the Washington-based law firm Lowenstein Sandler LLP and Zagreus Services LLC, the business name of the decentralised Solana exchange Orca.
Miller Whitehouse-Levin, CEO of the Solana Policy Institute, stated: “Our goal is to establish a constructive collaboration with regulators to make markets more efficient.”
Robert Leshner, CEO of Superstate, added that the project aims to tokenise securities on high-performance blockchains, though he didn’t specify which networks would be used.
Tokenisation Market Could Reach $19 Trillion
The rapidly growing tokenisation trend in the crypto sector refers to transferring all types of financial assets onto the blockchain. BlackRock CEO Larry Fink and Robinhood CEO Vlad Tenev both describe tokenisation as a revolutionary technology in the world of investing. Ripple and the Boston Consulting Group project that the tokenisation market could reach $19 trillion by 2033.
Overcoming Regulatory Barriers
Project Open requests some regulatory flexibility outside the current financial framework. For instance, it proposes that network fees be classified as technology costs rather than securities transaction fees. Moreover, participating wallets will undergo KYC (Know Your Customer) verification.
Leshner stated, “The SEC already has the authority to establish a permanent regulatory framework allowing securities to be traded on blockchains instead of traditional exchanges,” adding that Congressional involvement may not be necessary.
If successful, this pilot program could pave the way for U.S. securities markets to transition permanently to blockchain. This is considered a major step forward in the integration of the crypto sector with traditional finance.
At the time of writing, Solana is trading at $151, up 6% over the past 24 hours.
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