Solana is becoming the ‘onchain Nasdaq’ says Solana Foundation exec

The saga to tokenize stocks is no longer theoretically the race for . A multi-horse race is a competition between rival model and real issuer, as well as billions in potential liquidity that may be at stake.

Solana Foundation’s chief of institutional growth Nick Ducoff re-defined it in terms of retail investors rarely heard, and explained why Sola is particularly well prepared for this type of use case in an interview with TheStreet Roundtable discussion recently.

“Solana’s vision of becoming the on-chain Nasdaq and home of internet capital markets is getting closer and closer,” Ducoff said.

The different approaches to tokenized equities

There are currently four distinct approaches to tokenized equities, each with real trade-offs.

The digital twin model, pioneered by OnDo Finance and credited with the first is the concept of . In the case of a token, it is an expression for’share in this fundamental asset’ the issuer buys the stock, holds it in custody and prices trades through re-for-quote system.

Trading runs Sunday night through Friday night, a 24/5 model.

It’s also the 24/7 model, starring Kraken’d xStocks as well as his , the second is the 24-hour version of “The World Widening” (the term for this type of Paraphrase) model. These trades are done at the same time by automated market makers (AMMs), decentralized protocols that automatically price trade without a central exchange. Despite the fact that is real, it’s not just an trade-off.

“You may have wider spreads because you’re not getting a quote directly from the market,” Ducoff said.

This model, which is championed by SuperState through its opening Bell platform, is known as the direct transfer agent model and has been named The third. Exodus, Forward Industries and Galaxy are examples of companies that act as ‘issuers of record’.

If you were buying it on your brokerage account, Ducoff said ‘You’re getting the stock that you would be purchasing.

That distinction carries real weight for compliance and legitimacy.

The fourth, and newest, is the DTCC entitlement model.

The U.S.’s backbone is the Depository Trust & Clearing Corporation (DTCC), which was founded by , DMC. A , S. equity settlement), retains custody of the underlying security but allows holders to use it as collateral on-chain.

More news

• Roundtable CEO James Heckman Details NASDAQ Strategy, Long-Term Focus, Capitalization Structure, and Lock-Up
• Cathie Wood has brutal response to 50% Bitcoin crash
• 1inch legal chief says Clarity Act is ‘very DeFi-friendly’

Solana’s bet

Ducoff didn’t crown a winner, but he was clear on one point: Solana supports all four.

I’m not sure which model will win the market, but Solana is a fan of all these models,” he said.

It is a structural advantage that’s important to , and that’s. But if tokenized equities are mainstream, and the current momentum suggests they are, Solana’s infrastructure could be at the center of it all.

questions are still open aboutRegulatory clarity, and liquidity depth, but for the first time it is a plumbing for ’24 hours global stock market’ that is actively being constructed. That’s a bit of building on crypto rails and it’t even .

Thanks for reading Solana is becoming the ‘onchain Nasdaq’ says Solana Foundation exec