Orca and Loopscale merge to form Formation for industrial DeFi

Solana-based decentralized exchange Orca and lending platform Loopscale have announced a merger to form a new company called Formation. Led by CEO Luke Truitt, the entity aims to bridge decentralized finance (DeFi) liquidity with capital-intensive physical industries, including artificial intelligence, energy, robotics, and defense.

Formation intends to provide a complete pipeline from issuance and financing to trading for emerging assets. The company has already established partnerships with several institutions, including humanoid robot startup Figure, Shinhan Asset Management in South Korea, Superstate, R3, and Securitize. This move signals a strategic shift within the Solana ecosystem from speculative trading toward institutional-grade infrastructure and real-world asset (RWA) tokenization.

In a related governance development, the Orca DAO has proposed a major restructuring to support its next phase. The proposal includes a strategic acquisition of an undisclosed Solana DeFi protocol to expand credit and yield products, which could potentially increase Orca’s Total Value Locked (TVL) by approximately 50%. The plan also involves a treasury overhaul and changes to protocol fee distributions.