Solana Beats TradFi to Democratize Private Market Trading

Building off the success of tokenized stocks, Solana’s thriving RWA scene is extending its long reach into one of TradFi’s most exclusive sectors.

PreStocks, an emerging Solana-based project, is enabling investors to trade tokenized assets representing the value of private companies, like OpenAI, Anthropic, and SpaceX.

How are PreStocks tokens backed? Do they offer holders any rights, and can we expect to see these assets integrated into Solana’s lending markets?

PreStocks Goes Live

PreStocks, a company backed by Republic Capital, has launched on Solana, enabling anyone with an internet connection to invest in some of the world’s most exclusive companies. At launch, PreStock’s offers indirect exposure to private market companies, including XAI, Neuralink, and Discord.

PreStocks operates in a similar fashion to Backed’s tokenized stocks. According to the site’s admittedly limited documentation, PreStocks are “are fully backed by holding companies that are directly or indirectly invested in the underlying company.” Despite their backing, PreStocks do not offer any ownership, voting, dividend, information, or other legal rights to the holder of the onchain asset.

Initial reception to the Prestocks launch has been met with enthusiasm, with supporters championing blockchain’s capacity to democratize financial markets at an unprecedented scale.

Ranger Front-Runs Launch

While PreStocks opted to debut their private market tokens in partnership with Jupiter and Meteora, an eagle-eyed aggregator were able to front-run the official launch. 

Ranger Finance, a spot and perps aggregator, announced that PreStocks assets were live and tradable on its platform a few hours before the launch, albeit with limited liquidity.

According to Ranger’s interface, SpaceX, OpenAI, and Anduril have been the most popular assets among traders, witnessing just over $370k in collective volume.

Deeper DeFi Integrations?

With RWAs becoming more firmly intertwined in Solana’s DeFi scene, it remains to be seen if lending markets will adopt PreStock assets. While the firm asserts that PreStocks’ tokens can be lent out and used as collateral, this is currently unavailable across Solana’s lending markets.

SolanaFloor engaged PreStocks for comment regarding the firm’s future integration plans, but has yet to receive a response. Given that PreStocks has partnered with Jupiter and Meteora for its launch, it is possible that PreStocks assets will make their debut in Jupiter Lend before expanding wider into Solana DeFi.

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