Formation Securities said it had notified the U.S. Securities and Exchange Commission of plans to operate a tokenized securities venue on Solana, with trading expected to begin in early 2027.
As reported by Decrypt on November 10, 2026, at 01:46:02 UTC+8, the firm said Monday that it had filed under the SEC’s “Innovation Exemption.” The conditional relief, issued in September, allows eligible tokenized stocks to trade through permissioned automated market maker pools on qualifying venues.
Tokenized shares of Exodus Movement, Forward Industries and Galaxy Digital were anticipated at launch. The announcement describes a planned venue—not evidence of trading volume, investor participation or sustained demand.
Stockholder rights, with onchain settlement
Formation’s proposal aims to combine round-the-clock markets and near-instant settlement with the rights attached to conventional shares. Under the exemption, eligible tokens must retain the same voting and dividend rights as traditional stock.
Each trade would settle atomically onchain, a feature intended to reduce settlement risk. A transfer agent would continue to maintain the official shareholder record, while trades would appear on the public ledger in real time.
“Tokenized stocks will succeed only if public companies see the value in them, and we intend to build this market together with issuers,” said Formation Securities President Christopher Montagano. Formation licenses its trading technology from Solana-based exchange Orca.
Securitize and Superstate were expected to supply tokenized shares. Securitize CEO Carlos Domingo said each of its tokens is backed by a real share held by its broker-dealer.
Distribution does not mean unrestricted access
Access would be limited to verified investors, through Formation’s platform and distributors including Alpaca and CoinList’s Passage; custodians Anchorage, BitGo and Fireblocks; and wallet providers Solflare and Squads.
That distinction matters for adoption: a public record of trades does not make the venue permissionless. The report provides no investor counts, activity measurements or retention data with which to assess demand.
Another entrant in the tokenized-stock race
Formation’s effort builds on Project Open, a proposal submitted to the SEC in 2025 by a coalition including Orca, Superstate and the Solana Policy Institute.
The company said it chose Solana for its speed, low costs and experience with tokenized assets, citing more than $5 billion in tokenized real-world assets on the network. That figure describes the broader asset base cited by Formation, not activity on its proposed stock venue; the report supplies no comparison period or growth rate.
Other initiatives were also taking shape at the time of the report. The NYSE had tapped Avalanche for settlement on its planned tokenized securities platform, Securitize had launched tokenized stocks on Solana, and an OKX-ICE venue was in development—although all Magnificent Seven stocks had opted out of the latter.
For Formation, the next adoption milestone described in the report was the expected early-2027 trading launch. Whether the planned distribution network and issuer participation would translate into durable use remained unmeasured.
