Formation plans a tokenized stocks venue on Solana under the SEC exemption

Formation Securities told the SEC on 9 November that it plans to run a tokenized stocks venue on Solana, with trading expected in early 2027. The company says it expects to start with tokenized shares of three crypto companies: wallet maker Exodus Movement (EXOD), Solana treasury firm Forward Industries (FWDI) and Galaxy Digital (GLXY).

Formation’s public notice says the SEC has not passed on the merits or accuracy of its disclosures, and that the venue is not registered with the agency for this activity.

What Formation filed

The venue relies on the exemption the SEC issued on 17 September, which lets qualifying venues trade tokenized US-listed stocks without registering as exchanges. The notice describes a venue with no order book. Formation will not hold customer assets or private keys, and it will not lend to traders.

You would trade against automated market maker pools around the clock, with each stock paired against a non-security crypto asset or a tokenized money market fund. Formation’s release says each trade settles atomically on-chain and that the tokens must carry the same voting and dividend rights as ordinary shares. Limits on listed stocks and trading volume also apply.

Who can trade, and how

Formation will permission every wallet. Before you trade, the venue or its service providers run identity checks, sanctions and anti-money-laundering screening, and a review of your wallet. The firm that tokenized the stock can then run its own review, so you may need approval from both.

Superstate and Securitize are expected to supply the tokens. Access channels named in the release:

• Formation’s own platform and Alpaca;
• Passage by CoinList and Jito’s JTX interface;
• custodians Anchorage Digital Bank, BitGo Bank & Trust and Fireblocks;
• the Solflare and Squads wallets.

The price can drift from the listed share. Pool prices come from the ratio of assets in each pool, and the smart contracts use no price oracles. The notice warns of gaps “particularly outside of regular U.S. exchange trading hours,” and adds that “a large trade may move the pool price substantially or fail.”

Why issuers decide the outcome

Under the exemption, a venue that lists a stock tokenized by a third party must notify the issuer, and the issuer can object within 30 days. Issuers have used that right against OKXICE, the OKX and Intercontinental Exchange venue, and The Block now counts 67 objecting firms. Formation’s notice says it has received no objection so far.

Christopher Montagano, president of Formation Securities, put the problem this way: “Tokenized stocks will succeed only if public companies see the value in them.” We read the starting list the same way, since all three companies already work in crypto. Formation has not explained its selection.

Formation’s parent is Valcrest, Inc., and the venue licenses its trading contracts from Orca. Orca and Loopscale announced their merger under the Formation name in October. The release cites more than $5 billion of tokenized real-world assets on Solana, using rwa.xyz data, as one reason for the choice of network.

What to watch before 2027

Formation calls this the first such venue on Solana, but early 2027 remains its own forecast, and the release warns that results may differ. Watch the next versions of the notice: Formation has to update it before adding any stock or paired asset.

Based on Formation Securities’ press release and public notice of 9 November 2026 and on The Block’s report. Trading dates and listed stocks are the company’s plans. This is not investment advice.