Formation plans Solana-based tokenized securities venue in U.S.

Traders Union
All News
Crypto
Solana-based tokenized securities venue

Highlights

Formation notified the SEC of plans to launch a Solana-based tokenized securities platform leveraging the innovation exemption, with trading slated for early 2027.
The platform will list initial tokenized shares including Exodus Movement, Forward Industries, and Galaxy Digital, offering 24/7 trading and full shareholder rights to verified investors.
Formation emerges after Orca and Loopscale's merger, already collaborating with Figure, Shinhan Asset Management, Superstate, R3, and Securitize to advance onchain finance.

SEC pathway and launch structure

As reported by The Block, citing Formation, the company has notified the U.S. Securities and Exchange Commission that it intends to operate the platform under the regulator's innovation exemption, which allows conditional secondary trading of eligible tokenized stocks through permissioned automated market maker liquidity pools on qualified venues.

In its statement, Formation says trading is expected to start in early 2027. The initial tokenized shares are set to include Exodus Movement, Forward Industries, and Galaxy Digital.

The shares are to be offered to verified investors through Superstate, Formation Securities' own platform, other distribution channels such as Alpaca, and custodians including Anchorage and BitGo Bank. Formation says the tokenized securities will carry the same voting and dividend rights as other shareholders, while allowing around-the-clock trading against stablecoins and other eligible assets with atomic onchain settlement.

Competitive backdrop and market implications

Formation says it selected Solana because of its reliability, speed, low cost, and support for more than $5 billion in tokenized real-world assets. The company is positioning the venue as a transparent market structure that extends trading beyond traditional market hours while keeping core shareholder protections intact.

The announcement comes after OKXICE, the joint venture between crypto exchange OKX and NYSE parent Intercontinental Exchange, said it would list and trade tokenized shares under the SEC's innovation exemption. That venue is not yet live, and 67 firms have objected to the tokenization of their shares for trading on the platform.

Formation says it plans to work directly with issuers as tokenized equities develop. Christopher Montagano, president of Formation Securities, says tokenized stocks will succeed only if public companies see value in them, and adds that the company aims to build the market together with issuers.

Formation was established last month through the merger of Solana-based decentralized exchange Orca and Loopscale to focus on tokenization and onchain finance. In a press release, it says it is already working with Figure, Shinhan Asset Management, Superstate, R3, and Securitize.

Our earlier coverage of Wall Street’s push toward S&P 500’s 8,000 level focused on how the rally was being tested by higher oil prices, elevated Treasury yields, and political uncertainty heading into the midterm elections. The piece also highlighted growing concentration risk, with mega-cap and AI-linked leaders carrying much of the index even as market breadth weakened and investors looked to third-quarter earnings to justify lofty valuations.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.