Forward Industries Converts 1.7 Million SOL, 25% of its Solana Holdings, into Liquid Staking Token

Forward Industries, Inc. (NASDAQ: FWDI) has announced a strategic partnership with Sanctum to launch fwdSOL, a new liquid staking token (LST) designed to optimize its substantial Solana (SOL) holdings. This initiative, unveiled on December 2, allows the company to generate additional yield and enhance capital efficiency within the digital asset economy. "Liquid staking with Sanctum gives us more flexibility and efficiency in deploying capital, going beyond passive staking to capture incremental sources of yield responsibly, while maintaining liquidity," stated Kyle Samani, Chairman of Forward Industries, adding that the launch marks "another milestone in our mission to build a robust, optimized, and transparent treasury strategy."

Under the terms of the partnership, approximately 1,725,100 SOL tokens, representing 25% of Forward Industries' total Solana holdings, will be converted into fwdSOL. This conversion enables the company to continue earning native staking yield while simultaneously deploying the LST across various decentralized finance (DeFi) opportunities. These opportunities include using fwdSOL as collateral to borrow assets, which can then be allocated into vetted DeFi protocols or revenue-generating strategies with institutional partners, providing enhanced financial flexibility.

This move is a significant step in Forward Industries' ambitious Solana treasury strategy, which commenced in September 2025 with a clear focus on acquiring SOL and increasing SOL-per-share. The company currently commands a substantial portfolio, holding over 6.9 million SOL, an investment valued at approximately $1.59 billion. This aggressive digital asset strategy is notably supported by prominent investors and operating partners, including Galaxy Digital, Jump Crypto, and Multicoin Capital.

Sanctum, recognized as a leading infrastructure provider for Solana's liquid staking tokens, plays a crucial role in enabling this advanced treasury management approach. FP Lee, Co-Founder & CEO of Sanctum, highlighted the broader industry validation, stating that "Forward Industries’ active, institutional approach to treasury management showcases exactly how liquid staking can power more sophisticated on-chain strategies." As part of the collaboration, Forward Industries also gains the opportunity to integrate Sanctum's native governance token, CLOUD, into its holdings.

The introduction of fwdSOL is expected to build upon the already strong performance of Forward Industries' existing SOL holdings, which have generated a gross annual percentage yield between 6.82% and 7.01% through traditional staking. This strategic pivot into liquid staking underscores the company's commitment to maximizing returns from its digital assets. Investors have responded positively, with Forward Industries' shares experiencing a notable 93.6% surge over the past year, reflecting growing confidence in its evolving digital asset ventures. The company is also scheduled to report earnings on December 18.