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ALPHARETTA, GA — January 2, 2026
OTCM Protocol, Inc., today announced the completion of its beta-testing of its proprietary Layer-2 blockchain infrastructure on Solana, designed to transform over-the-counter (OTC) and global securities into actively traded digital assets through its Security Tokens 2022 (ST22). The innovative platform enables global exchanges to tokenize their securities for worldwide traders on a friendly, regulated, and safe platform.
The OTCM Protocol represents a paradigm shift in securities tokenization, combining institutional-grade security with the accessibility and liquidity of defi. Built on Solana’s high-performance blockchain and utilizing the SPL Token-2022 standard with Transfer Hook extensions, the platform enables continuous 24/7 trading of tokenized securities backed 1:1 by real equity held with registered industry custodian Empire Stock Transfer.
The OTCM Protocol Exclusive Layer 2 implements a sophisticated eight-layer stack architecture, each tier integrating seamlessly with the OTCM Utility Token as its native currency:
 
- Layer 1 – Blockchain Foundation: Leverages Solana’s runtime environment with Proof of History consensus and Sealevel VM for parallel transaction processing.
- Layer 2 – Core Infrastructure: Transaction pool optimization, mempool prioritization, state database with Merkle tree verification, and P2P networking protocols.
- Layer 3 – Token-2022 Extensions: Full Transfer Hook implementation, metadata management, and mint controls for comprehensive token lifecycle management.
- Layer 4 – OTCM Token Engine: Native utility token operations powering fee discounts (up to 50%), reward distribution, and governance participation.
- Layer 5 – Protocol Logic: Custom AMM engine, dynamic bonding curves, private liquidity pools, and deflationary burn mechanisms.
- Layer 6 – Application Services: Proprietary Centralized-Decentralized Exchange (CEDEX) with Token-2022 support, DAO governance framework, and individual issuer staking nodes (8-40% APY).
- Layer 7 – Wallet Infrastructure: OTCM Web3 & dApp Wallet for iOS and Android with native SMT and OTCM token support.
- Layer 8 – User Interface: Web application, mobile apps, and a comprehensive API suite for seamless user interaction.
At the core of OTCM Protocol’s innovation is its Transfer Hook program—a programmable security gateway that validates every token transfer against 42 distinct security controls. This architecture makes rugpulls mathematically impossible by design, not merely improbable.
The security controls are organized into six comprehensive categories:
- Balance Validation (9 controls): Wallet balance checks, anomaly detection, and holder verification systems.
- Limits & Restrictions (11 controls): Maximum wallet percentage (4.99%), transfer limits, cooldown periods, and sell restrictions.
- Pool & Trading Protection (8 controls): Liquidity monitoring, price impact controls, and sandwich attack prevention.
- Authorization (5 controls): Multi-signature validation, role-based access, and administrative controls.
- Mathematical Safety (3 controls): Overflow protection, precision handling, and rounding rule enforcement.
- Configuration (6 controls): Parameter bounds, upgrade controls, and emergency intervention settings.
The protocol’s circuit breaker system automatically triggers when selling reaches 30% within a monitoring window, halting trading for a 24-hour cooldown period to prevent panic cascades. This protection, combined with volume spike detection exceeding 100x average and real-time price monitoring via Pyth Network oracle integration, creates an impenetrable defensive perimeter against market manipulation.
Unlike traditional DeFi platforms vulnerable to liquidity extraction, OTCM Protocol’s private liquidity pool is permanently locked by design. The withdrawal function simply does not exist in the smart contract code—liquidity can only be added, never removed. This architectural decision eliminates the possibility of rugpulls at the protocol level.
OTCM Protocol’s proprietary Automated Market Maker (AMM) represents a significant advancement over existing DEX infrastructure. Traditional platforms like Raydium cannot invoke Token-2022 Transfer Hooks, disabling critical security protections upon token graduation. OTCM’s custom AMM maintains Transfer Hook functionality throughout the entire token lifecycle, ensuring continuous protection.
The platform features dynamic lifecycle-aware bonding curves that automatically adapt based on token age, volatility, volume patterns, and community growth. During the launch phase, exponential curves enable rapid price discovery. As tokens mature, polynomial curves provide controlled growth that rewards early adopters while preventing unsustainable parabolic moves.
Established tokens transition to logarithmic stability curves that minimize volatility while maintaining trading interest.
The Layer 2 infrastructure development follows an aggressive timeline targeting completion by Q1-Q2 2026. Phase 1 establishes the Transfer Hook foundation and 42 security controls. Subsequent phases deliver the OTCM Utility Token system, custom AMM engine, bonding curve mechanisms, private liquidity pools, DAO governance, staking nodes, and user-facing applications.
OTCM Protocol, Inc.
240 Vaughn Dr, Ste 8
Alpharetta, GA 30009 United States
Website: otcm.io
Wiki: otcm.info
X Site: @otcmprotocol
Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve known and unknown risks, uncertainties, and other factors which may cause actual results to differ materially from those expressed or implied. Investors should not place undue reliance on these forward-looking statements. The company undertakes no obligation to publicly update any forward-looking statements.