The 26-year-old Walton, who left Wakefield at the end of last season to join the Bulls on a two-year contract, has signed an initial 12-month deal with Featherstone.
Walton, who became a free agent on Tuesday when Bradford went into liquidation, said: "It has all happened very fast. I was 90 per cent sure the Bulls were going to survive, we were told a new owner was coming in.
"That is in the past now, though, and I am very happy to be joining Featherstone. This is a club I have always wanted to play for and am confident I can do well here."