Formation Securities Plans Solana’s First Tokenized Stock Venue Under the SEC Innovation Exemption

Formation Securities says it has told the SEC it will run a tokenized securities venue on Solana, with trading expected to start in early 2027. Galaxy Digital, Exodus Movement and Forward Industries are already signed up as the first issuers. Investors would hold shares in their own digital wallets, trade around the clock with stablecoins and see instant onchain settlement. The tokens would carry normal shareholder rights, including voting and dividends. Formation joins OKXICE, Canton based TSV LLC and Perpetuals.com among firms planning venues under the SEC’s five year framework, which lets qualifying platforms use automated market makers, limits participation to verified investors and caps trading volume and the number of securities.

Why Formation Chose Willing Issuers First

Companies have 30 days to block trading when an unaffiliated party tokenizes their shares. OKXICE ran into that rule, as about 90% of the 62 companies it picked had objected by Friday, including Apple, Microsoft and Meta. Formation president Christopher Montagano said his firm avoided the problem by securing its first three issuers before announcing. All three already work with tokenization through Superstate or Securitize, and the plan is to recruit more public companies over the next two months.

Solana Tokenized Stock Market and Partners

Open Marketplace Strategy

Solana ranks third in tokenized stock value behind Ethereum and BNB Chain, with roughly $570 million of a $3.8 billion market, and it led all chains with over $7 billion traded last week, much of it in synthetic tokens. Formation wants rival providers on one platform, with Superstate and Securitize supplying shares, Anchorage Digital, BitGo and Fireblocks offering custody, and partners including Alpaca, CoinList, Solflare, Squads and Jito’s JTX interface. It will license trading technology from Orca, and Montagano says the goal is to compete with Nasdaq on spreads and efficiency.