The initiative is aimed at allowing securities to be issued by U.S. entities on public blockchain networks, with the possibility for investors to trade those securities via compliant interfaces.
A request has been filed with the U.S. Securities and Exchange Commission (SEC) by a coalition led by the Solana Policy Institute, decentralized exchange Orca, and registered investment adviser Superstate, seeking approval for a pilot program to issue and facilitate secondary trading of securities on public blockchains.
The April 30 filing proposes that the SEC grant exemptive relief to facilitate the “Project Open” initiative, allowing it to operate within existing regulatory frameworks.
The initiative would allow US entities to issue securities on public blockchain networks, and investors could trade those securities through compliant interfaces. Orca would serve as the venue for secondary transactions.
“Project Open is an embodiment of American progress in financial innovation. Our goal is to work constructively with the SEC and industry partners to create internet capital markets, and make all capital markets more efficient, accessible, and transparent.”
Solana Policy Institute CEO Miller Whitehouse-Levine said:
Superstate would issue the securities, and the Solana Policy Institute would coordinate the technical and regulatory engagement.
The sponsors structured the filing as a time-limited pilot under SEC Rules 5b-3 and 15c3-3 and requested regulatory relief to design and operate a market structure that aligns with existing investor protection rules while using blockchain settlement layers.
The sponsors aim to demonstrate that publicly accessible blockchains can support transparent and compliant markets for traditional securities.
Open Project Initiative Launched
The proposal allows issuers to represent securities as tokens on a public blockchain like Solana (SOL), enabling programmable compliance features and settlement mechanisms.
Eligible investors would access the securities through interfaces that follow know-your-customer (KYC) and anti-money laundering (AML) regulations.
The liquidity venue and price discovery would be provided by Orca, while Superstate, operating under an SEC-registered investment advisor (RIA) structure, would be responsible for serving as the issuer. The pilot would propose a measured scope, targeting specific asset types and capped transaction volumes.
Regulators are evaluating the feasibility of public blockchain infrastructure as an alternative to existing clearing and settlement systems, such as DTCC. They are focusing on regulatory auditability, transparency, and operational resilience.
The coalition is seeking no-action relief or exemption orders from the SEC’s Divisions of Trading and Markets and Investment Management.
The petition outlines legal arguments, asserting that the pilot remains within the boundaries of the Investment Company Act and Exchange Act because of its narrow structure and strong oversight features.
Regulatory Dialogue Deepens as Market Continues to Evolve
The filing arrives as the SEC increasingly engages with tokenization and blockchain-based infrastructure.
“Project Open” explicitly calls for the use of public, decentralized blockchain infrastructure. The sponsors argue that public chains offer verifiable audit trails, open access to market data, and reduced entry barriers for issuers and intermediaries, aligning with the SEC’s long-term goals for transparency and investor protection.
The pilot would also generate empirical data on investor behavior, system performance, and compliance monitoring within a blockchain-native environment, which would inform future policymaking.
The filing includes technical documents that explain how the cryptographic settlement system works. Moreover, the document covers token rules and access controls, helping regulators monitor activity and ensure compliance with the rules.
The SEC has not issued a formal response, and it has not provided a timeline for a decision.
If the SEC approves it, the Project Open trial will become one of the first attempts to trade securities directly on a public blockchain. It will involve a registered asset manager and a decentralized exchange working together.
