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 filing from April 30 proposes that exemptive relief be granted by the SEC to facilitate the “Project Open” initiative, operating under existing regulatory frameworks.
The initiative would enable US entities to issue securities on public blockchain networks, with investors being permitted to trade those securities through compliant interfaces. Orca would be designated 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:
The securities would be issued by Superstate, while the technical and regulatory engagement would be coordinated by the Solana Policy Institute.
The filing has been structured as a time-limited pilot under SEC Rules 5b-3 and 15c3-3, with regulatory relief being requested to design and operate a market structure that is compatible with existing investor protection rules while utilizing blockchain settlement layers.
It is aimed by the sponsors to demonstrate that publicly accessible blockchains can support transparent and compliant markets for traditional securities.
The proposal would allow tokens to be issued to represent securities on a public blockchain, such as Solana (SOL), enabling programmable compliance features and settlement mechanisms.
The securities would be made available to eligible investors through interfaces governed by 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.
The feasibility of public blockchain infrastructure as an alternative to existing clearing and settlement systems, such as DTCC, is being evaluated. The focus is placed on regulatory auditability, transparency, and operational resilience.
No-action relief or exemption orders from the SEC’s Divisions of Trading and Markets and Investment Management are being sought by the coalition.
Legal arguments are outlined in the petition, asserting that the pilot would stay within the boundaries of the Investment Company Act and Exchange Act, due to its narrow structure and oversight features.
The filing arrives at a time when increased engagement with tokenization and blockchain-based infrastructure is being seen from the SEC.
“Project Open” explicitly calls for the use of public, decentralized blockchain infrastructure. It is argued by the sponsors that public chains provide verifiable audit trails, open access to market data, and lower barriers to entry 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 documentation that details the cryptographic settlement model, token standards, and access controls, which are intended to support supervisory visibility and ensure compliance enforcement.
No formal response has been issued by the SEC, and a timeline for a decision is not currently available.
If approval is granted, the Project Open pilot would be one of the first efforts sanctioned by the SEC to operationalize securities trading directly on a public blockchain, with a registered asset manager and decentralized exchange acting as counterparties.
