A New Era for Texas Capital Markets
On September 30, 2025, the U.S. Securities and Exchange Commission (SEC) officially approved the application of the Texas Stock Exchange (TXSE) to operate as a national securities exchange. This marks the first approval of a new U.S. stock exchange in over a decade, a milestone that solidifies Texas’s growing prominence in national finance.
The TXSE will be headquartered in Dallas, Texas, and is expected to begin listing and trading operations in early 2026. The exchange was initially filed for national registration on January 31, 2025, and has now completed the rigorous SEC approval process to join the ranks of the NYSE and Nasdaq as a fully recognized national exchange. According to the TXSE Group, the new exchange aims to create a more issuer-friendly, cost-effective platform for public companies, exchange-traded products (ETPs), and innovative securities offerings, all within a business-friendly Texas regulatory and tax environment.
Texas Ties and Perspective
As a Southern Methodist University (SMU) graduate who earned degrees in both Economics and Finance, the news of a Dallas-based national exchange does not come as a surprise to me. Living in Dallas for nearly four years and maintaining strong ties to the Lone Star State, I’ve long believed in Texas’ unmatched business potential. This latest development simply reaffirms what many of us who have lived and worked here already know: Texas is built for growth.
The southern charm, entrepreneurial spirit, and shared belief that hard work, not overregulation, drives prosperity are woven into the state’s DNA. Texas’ low-tax, pro-business environment continues to attract innovators, lenders, and investors who see limitless opportunity.
Why This Matters to Private Lenders
The creation of a Dallas-based national stock exchange will not immediately alter the day-to-day lending operations of private lenders, but it will reshape the ecosystem in which they operate and here’s how:
- Capital Formation Shifts Closer to Home With a national exchange now headquartered in Dallas, Texas will attract more investment banking, venture capital, and capital markets infrastructure.
For private lenders, that means:
- More borrowers and developers entering the market, particularly in growth-oriented industries.
- Closer proximity to capital sources that could lead to new financing partnerships,secondary market activity, and debt placement opportunities.
- A larger network of Texas-based sponsors and investors who value the flexibility of private credit before, during, and after an IPO.
- Pre-IPO and Bridge Loan Opportunities Private lenders often fund companies and projects on the cusp of major liquidity events. With TXSE opening the door for new IPOs and dual listings in 2026, lenders will see:
- Increased demand for bridge loans or mezzanine financing from companies preparing to go public.
- More structured transactions tied to equity events, convertible debt, and pre-IPO capitalization needs.
- Expanded advisory roles for lenders partnering with counsel to structure deals anticipating a TXSE listing.
Geraci LLP’s finance and securities teams can help private lenders structure bridge, convertible, and pre-IPO lending instruments that align with the capital markets opportunities emerging from TXSE.
- Strengthening Texas as a Lending Hub The Texas Stock Exchange cements Dallas as the financial capital of the South. This concentration of financial infrastructure will attract:
- New real estate investors, private equity firms, and alternative lenders relocating to Texas.
- More developers and sponsors seeking non-traditional financing.
- Expanded private capital ecosystems, where private lending becomes the preferred vehicle for fast, flexible financing.
For private lenders, this environment means more deal flow, stronger borrower pipelines, and new joint-venture prospects across real estate, construction, and business finance.
- Increased Competition and Professionalization As Texas’ capital markets mature, borrowers will gain access to more financing options — from public debt and equity to structured private capital. Private lenders should expect:
- Pressure on rates and yields, as public capital becomes more accessible to mid-market borrowers.
- A need for stronger documentation, compliance, and legal precision, particularly as institutional investors move into private credit.
- Partnership opportunities with emerging TXSE-listed companies or sponsors seeking private debt before scaling publicly.
Geraci LLP’s national platform allows lenders to navigate this competitive landscape while remaining compliant with Texas usury laws, licensing requirements, and business-purpose lending exemptions.
What Private Lenders Should Do Now
- Establish a Texas Presence.
The financial momentum around Dallas makes it an ideal base for expansion. Geraci LLP’s upcoming Dallas office will support lenders operating or originating in Texas.
- Evaluate Portfolio Exposure.
Review borrower profiles and asset classes that may benefit from the new capital formation opportunities surrounding TXSE.
- Plan for Growth in Texas Markets.
As investment activity accelerates, private lenders positioned early in Texas will have a first-mover advantage in deal flow and investor relationships.
- Partner with Counsel Who Understands Both Private Lending and Capital Markets. The intersection of private lending and public financing will become increasingly complex. Geraci LLP’s attorneys are uniquely equipped to advise lenders on structuring, licensing, and securities compliance across all states, including Texas.
The Bottom Line
The Texas Stock Exchange’s SEC approval on September 30, 2025, is more than a regional milestone; it’s a signal that Texas is emerging as a national financial powerhouse. For private lenders, it brings proximity to capital markets, new borrower classes, and broader deal flow, all within a state known for its business-friendly laws and pro-lending environment. Geraci LLP is expanding its footprint to Dallas to help private lenders capitalize on this next chapter in Texas finance, combining national expertise with local presence to deliver exceptional legal guidance across every transaction.
About Geraci LLP
Geraci LLP is the nation’s leading law firm dedicated exclusively to private lending. We
represent lenders, brokers, and capital providers in all aspects of their business, from loan
documentation, licensing, and fund formation to foreclosure, enforcement, and securities
compliance.
