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Formation Securities Notifies SEC for Solana Tokenized Stock Venue, Trading in Early 2027
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Formation Securities notified the SEC to operate a Solana tokenized securities venue under Innovation Exemption. Initial listings include Galaxy Digital, Exodus Movement, Forward Industries with 24/7 trading and on-chain settlement.
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Formation targets early 2027
Formation Securities 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.
Formation said the initial tokenized shares would include Exodus Movement, Forward Industries and Galaxy Digital, and it described the venue as offering 24/7 trading of tokenized shares.
Formation said the SEC’s “Innovation Exemption” would support secondary trading in tokenized shares for approved investors, and it framed the model around permissioned trading pools.
Formation also said holders of tokenized shares would retain voting and dividend rights, while trades would settle atomically onchain.
Solana’s support of more than $5 billion in tokenized real-world assets, along with reliability, speed, and low cost, drove Formation’s choice of Solana.
Stablecoins and onchain settlement
Formation said investors would trade tokenized shares around-the-clock against stablecoins and other eligible assets, with settlement described as atomic onchain. Automated market maker technology would allow investors to hold securities in their own wallets and settle trades onchain against stablecoins and other eligible assets. Christopher Montagano, president of Formation Securities, said, "Tokenized stocks will succeed only if public companies see the value in them, and we intend to build this market together with issuers."
A transfer agent would keep the official shareholder record, while every trade posts to the public ledger in real time. Solana’s official account described shares settling “atomically onchain, 24/7,” while Formation’s announcement did not specify the payment currency.
Issuer objections and SEC process
Trading venues must notify issuers in writing and wait at least 30 calendar days before trading shares tokenized by unaffiliated third parties under the Innovation Exemption. More than 50 companies had objected to having their shares tokenized on OKXICE as of early November, and Nasdaq warned in September about unforeseen consequences for liquidity, price discovery and long-term shareholder value. A total of 67 firms had objected to the tokenization of their shares for trading on the platform, even though the venue was not live.
“The notice does not mean the market is already active or that the SEC has specifically approved the launch.”
The SEC’s Innovation Exemption allows a venue to trade tokenized stocks without registering as a national stock exchange for five years, and each venue must notify companies 30 days before listing their stocks. The notice does not mean the market is already active or that the SEC has specifically approved its launch.