Formation Securities Plans Solana Tokenized Stock Venue Under SEC Exemption
Formation Securities has notified the SEC of plans to launch a Solana-based venue for tokenized shares of Galaxy Digital, Exodus Movement and Forward Industries in early 2027. The platform would operate under the SEC's Innovation Exemption, and no trading has begun.
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What Formation Has Proposed
Formation Securities has notified the U.S. Securities and Exchange Commission that it intends to operate a tokenized securities venue on Solana, with trading expected to begin in early 2027. According to the company's Nov. 9 announcement, the first listings would be tokenized shares of Galaxy Digital (GLXY), Exodus Movement (EXOD) and Forward Industries (FWDI). The company has not started trading, and its launch remains subject to the conditions of the SEC's exemption.
The proposed venue would let verified investors buy and sell eligible U.S.-listed shares around the clock, settled in stablecoins and other permitted assets. Formation says the tokenized securities would carry the same shareholder rights as conventional stock, including voting and dividends. Tokenization providers Superstate and Securitize would make eligible securities available on the platform, and access would be distributed through partners including Alpaca, Passage by CoinList, Anchorage Digital Bank, BitGo Bank & Trust, Fireblocks, Solflare and Squads.
The SEC Framework Behind the Filing
Formation's proposal follows the SEC's September 17 decision allowing certain tokenized securities venues to operate under temporary regulatory exemptions. Under that framework, eligible stocks trade through permissioned automated market maker pools rather than order books, with smart contracts facilitating trades against available liquidity under predefined rules. Participating venues must cap trading volumes and the number of securities offered, verify that tokenized shares carry rights equivalent to their traditional counterparts, and publish public disclosures about trading activity.
Operators must publish proposed arrangements at least 30 days before opening. Coverage of the filing differs on how much this confers. Crypto.news reports the venue would operate under the Innovation Exemption without registering as a traditional exchange, while CoinDesk frames the plan as an expansion of the SEC's blockchain stock trading experiment. Both are consistent with the filing, but neither reflects an SEC approval: as the framework itself states, submitting a notice does not establish that the SEC has approved a venue or confirmed its compliance.
Scope and Open Questions
The venue would restrict participation to investors who complete identity verification and meet eligibility requirements. Formation has said it will seek issuer consent for listings, and its President, Christopher Montagano, said the market will succeed only if public companies see value in it. Whether the named issuers agree to list has not been confirmed in the material available.
Canton Strategic Holdings completed tokenized stock transactions on Nov. 4, placing Formation's plan within a wider run of blockchain-based stock arrangements involving existing securities firms.
Why It Matters
For Traders
Tokenized shares for GLXY, EXOD and FWDI are not trading yet, so no near-term price effect should be assumed from a 2027 launch plan.
For Investors
A permissioned, SEC-supervised path for tokenized equities on Solana signals regulators are testing on-chain stock trading rather than banning it.
For Builders
Permissioned AMM pools with equivalence-of-rights checks become a concrete design template for compliant tokenized securities on Solana.
This article is for information only and is not financial advice. Read the full disclaimer.
