Formation tells the SEC it plans a Solana tokenized-stock venue with three issuers

Formation Securities LLC notified the US Securities and Exchange Commission (SEC) on November 9 that it intends to operate a tokenized securities venue on the Solana blockchain, with trading expected to begin in early 2027, the company said in a press release.

A notice under the SEC's exemption, with three issuers anticipated at launch

The company said it "intends to operate under the SEC's Innovation Exemption," which it described as a conditional exemption that permits secondary trading of eligible tokenized stocks through permissioned automated market maker (AMM) liquidity pools on qualifying venues. An automated market maker prices trades from a pool of assets instead of matching buyers with sellers. Formation licenses its trading technology from Orca, a Solana-based trading platform. The release says the SEC published the exemption in September 2026, and that a public notice is available on Formation's website.

Tokenized shares of Exodus Movement (NYSE: EXOD), Forward Industries (Nasdaq: FWDI) and Galaxy Digital (Nasdaq: GLXY) are anticipated to be available at launch, the release says. Superstate and Securitize, two tokenization providers, are expected to make tokenized shares available on the venue.

Verified investors only, trading around the clock

Access is to be limited to verified participants. The company said verified investors are expected to reach the venue through its own platform and distribution channels that include Alpaca, Passage by CoinList, the custodians Anchorage Digital Bank, BitGo Bank & Trust and Fireblocks, the Jito trading interface JTX, and the wallet providers Solflare and Squads.

According to the release, holders would trade 24 hours a day, seven days a week, against stablecoins and other eligible assets, and "each trade will settle atomically onchain," which the company said is designed to reduce settlement risk. The company said the venue will operate under the exemption's conditions, "including limits on listed securities and trading volume, along with mandated public disclosures and customer diligence requirements."

Tokenized shares are to carry the same voting and dividend rights as other shareholders' shares, and the issuer's transfer agent is to keep the official record of shareholders, the company said.

What the company says issuers must want first

Christopher Montagano, president of Formation Securities, said in the release: "Tokenized stocks will succeed only if public companies see the value in them, and we intend to build this market together with issuers."

The release also quotes Carlos Domingo, chief executive of Securitize, who said the standard tokenized equities should meet is a token that is "backed by a real share held by our broker-dealer" and "held only by verified investors." Robert Leshner, co-founder and chief executive of Superstate, said the exemption means "the companies we work with can have their shares trade onchain, around the clock, on Formation Securities."

Formation said it builds on Project Open, a proposal submitted in April 2025 to the SEC's Crypto Task Force by a coalition including Orca, Superstate and the Solana Policy Institute. It chose Solana, it said, for "reliability, speed, low cost and established track record with the trading of tokenized assets."

The release is the company's own statement, and its plans carry the usual caveat. It says it contains forward-looking statements and that planned products "may not be available in all jurisdictions." FinanceInTime has not seen an SEC response to the notice. Another tokenized-stock venue, the NYSE-affiliated platform, chose Avalanche for its clearing ledger, as FinanceInTime reported.

Three anticipated issuers are a start, and not yet a market

We think the notable point is how much Formation's own pitch depends on issuers: its president says the market works only if public companies see value in it, and the release names three companies as anticipated at launch, not as committed. We read that as a sensible order of events, but the release does not say the issuers have signed.

The opportunity is regulated, round-the-clock trading with the same shareholder rights as ordinary shares. The threat is thin trading: access is limited to verified investors and the exemption caps listed securities and volume, so spreads and liquidity are open questions until trading starts in 2027. We do not forecast token prices. Our view would change if an anticipated issuer drops out, or if the SEC raises objections to the notice.

The view in this final section is FinanceInTime's editorial opinion, for information only. It is not investment, tax, legal or other advice, and it does not take your circumstances into account. Forecasts are uncertain and past results do not guarantee future ones.