Orca and Loopscale recently announced their merger, bringing together Orca’s trading and liquidity infrastructure with Loopscale’s credit and vault infrastructure. The combined team will operate as Formation, led by Loopscale co-founder Luke Truitt as CEO. Formation aims to give emerging assets a path from issuance to financing and liquidity, while expanding the range of assets and strategies available to capital allocators. Both the Orca and Loopscale protocols will remain the foundation of the ORCA and xORCA token network. Formation will build new, unified capabilities across origination, vault strategies, and distribution, building on the existing protocols.
Closing the gap between capital and innovation
AI, energy, robotics, and defense companies are driving a new wave of capital demand. Apollo estimates that nearly USD 3 trillion will be needed for AI infrastructure alone through 2028.
Many of the companies behind that demand do not fit neatly into traditional capital market boxes, where fixed underwriting, legal, servicing, and distribution costs favor larger, standardized deals. Formation broadens access to capital by reducing the cost and complexity of structuring, distributing and financing assets.
“The frontier economy is creating new business models and financing needs more rapidly than traditional market infrastructure is evolving to serve them,” said Luke Truitt, CEO of Formation. “Every major technological revolution has been paired with a financial one. We’re at an inflection point that requires capital markets to keep pace with the industries reshaping the economy.”
Built on proven infrastructure
Orca has processed more than USD 550 billion in trading volume since 2021. Loopscale has more than USD 150 million in deposits and has facilitated more than USD 2 billion in loans. Together, they bring a battle-tested platform and decade of operating history across trading, credit, and vault strategies.
“Orca has spent years building deep liquidity, and we’ve seen firsthand that liquidity alone isn’t enough to scale an asset,” said Christopher Montagano, Chief Strategy & Legal Officer of Orca. “The greater challenge is building the credit and distribution those assets need to grow, and Orca and Loopscale built complementary pieces of that infrastructure. Together, we can give issuers a complete path from launch to long-term market adoption.”
Powering the next capital formation cycle
Formation is building across origination, issuance, liquidity, credit and distribution, with a path into regulated U.S. capital markets. Over the next 12 months, the team plans to introduce new tools for issuers and capital allocation strategies alongside its existing trading, lending and vault offerings.
Formation is already working with Figure, Shinhan Asset Management, Superstate, R3 and Securitize to bring new assets to market and expand distribution.
“Having originated over USD 30 billion of credit onchain and scaled tokenized products to more than USD 650 million in DeFi, we know how much high-quality distribution partners matter for growth,” said Reid Simon, President of Digital Assets at Figure Technology Solutions, Inc. “We’ve worked closely with both the Orca and Loopscale teams over the past year, and are excited by what the unification of trading, credit and vault strategies will unlock for tokenized asset growth.”
Formation’s leadership includes Luke Truitt as Chief Executive Officer, Mary Gooneratne as Chief Operating Officer, and Christopher Montagano as Chief Strategy & Legal Officer.
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