Nick Ducoff, head of institutional growth at Solana Foundation, stated in a recent TheStreet Roundtable discussion that Solana’s vision of becoming the on-chain Nasdaq and home of internet capital markets is “getting closer and closer.” Ducoff outlined four competing approaches to tokenized equities currently in development, each with distinct trade-offs, and emphasized that Solana’s infrastructure supports all four models.
Four Tokenization Models
Digital Twin Model
Pioneered by Ondo Finance, the digital twin model operates with a token representing a share of the underlying asset. The issuer purchases and holds the stock in custody, with trades priced via a request-for-quote system. This model runs on a 24/5 schedule, trading Sunday night through Friday night.
24/7 Automated Market Maker Model
Led by Kraken’s xStocks, this model trades around the clock using automated market makers (AMMs)—decentralized protocols that automatically price trades without a central exchange. According to Ducoff, the trade-off is real: “You may have wider spreads because you’re not getting a quote directly from the market.”
Direct Transfer Agent Model
Championed by SuperState through its Opening Bell platform, this model uses companies like Exodus, Forward Industries, and Galaxy as issuers of record. Ducoff noted the compliance advantage: “You know you’re getting the same stock that you would be getting if you were buying it on your brokerage account.” This distinction carries weight for legitimacy and regulatory compliance.
DTCC Entitlement Model
The newest approach involves the Depository Trust & Clearing Corporation (DTCC), the backbone of U.S. equity settlement. Under this model, the DTCC retains custody of the underlying security while allowing holders to use it as on-chain collateral.
Solana’s Multi-Model Strategy
Ducoff did not declare a winner among the four models but made clear Solana’s positioning: “I’m not exactly sure which model is ultimately going to win in the market, but Solana supports all of these models.” This multi-model support represents a structural advantage if tokenized equities reach mainstream adoption. Regulatory clarity and liquidity depth remain open questions, but the infrastructure for a 24/7 global stock market is actively being built on crypto rails.
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