Orca, a decentralised exchange on Solana, and Loopscale, a Solana lending protocol, are merging into a single company called Formation.
The combined business is headquartered in New York. Financial terms were not disclosed. Loopscale co-founder Luke Truitt becomes chief executive, fellow co-founder Mary Gooneratne becomes chief operating officer, and Orca’s Christopher Montagano takes the role of chief strategy and legal officer.
What it means for the token
ORCA becomes the token for all of Formation. Loopscale will not launch a token of its own, and the points its users have been earning will convert later this year.
ORCA fell about 19% on the day of the announcement to around $2.28. Even after that drop it is up about 37% over the past week, having been one of the market’s biggest gainers earlier in the week. Its market value is about $138 million.
Trading plus credit
The idea is to put trading and lending in one place. Orca brings its trading infrastructure, which has handled more than $550 billion in volume since 2021. Loopscale brings a credit order book and vaults, with more than $150 million in deposits and over $2 billion in loans facilitated.
Combined, Formation says an issuer could launch an asset with both trading and borrowing available from day one. It plans to focus on financing for AI, energy, robotics and defence companies.
“Every major technological revolution has been paired with a financial one,” Truitt said.
The regulated route
Formation plans to run a tokenised securities venue under the SEC’s five-year innovation exemption, granted on 17 September, and to seek further licences. It expects to add issuer tools within 12 months.
Those plans come with conditions. The company says its planned products are subject to legal and regulatory requirements and may not be open to US users. Loopscale’s existing lending, vaults and positions carry on unchanged.
