Formation Securities LLC has notified the U.S. Securities and Exchange Commission of its intention to operate a tokenized securities venue on the Solana blockchain. The platform is designed to enable secondary trading of eligible U.S.-listed stocks in tokenized form under the regulator’s Innovation Exemption framework.

Trading is projected to begin in early 2027. The initial securities expected to be available include tokenized shares of Exodus Movement Inc., Forward Industries Inc. and Galaxy Digital Inc. Superstate and Securitize are expected to supply the tokenized versions of these shares for the venue.

Structure and Trading Features

The venue will rely on automated market maker technology licensed from Solana-based protocol Orca. Rather than a traditional order book, trades will occur against permissioned liquidity pools. Verified investors will be able to hold the tokenized shares in their own digital wallets and trade them against stablecoins and other eligible assets at any time of day.

Each transaction is intended to settle atomically on Solana, delivering the securities to the buyer and payment to the seller in a single on-chain step. The tokenized shares must carry the same rights as their traditional counterparts, including voting and dividend entitlements. Official shareholder records will continue to be maintained by the relevant transfer agents.

Access will be restricted to participants who complete identity verification and meet eligibility requirements. Distribution channels are expected to include the Formation Securities platform along with partners such as Alpaca, Passage by CoinList, Anchorage Digital Bank, BitGo Bank & Trust, Fireblocks, Solflare, Squads and Jito’s JTX interface.

Regulatory Framework

The plans fall under the SEC’s Innovation Exemption, issued in September 2026. The temporary framework permits qualifying venues to facilitate secondary trading of certain tokenized national market system stocks through permissioned automated market maker pools. Operators must observe limits on the number of securities offered and overall trading volume, publish detailed disclosures on activity, and ensure the tokenized instruments preserve traditional shareholder rights.

A public notice must be filed at least 30 days before operations begin. Submission of the notice does not constitute SEC approval or confirmation of compliance. Formation’s filing identifies the three initial securities and outlines procedures for reviewing tokenization structures before admission to trading.

Under the rules, public companies receive an opportunity to object when their shares are tokenized by an unaffiliated party. Formation has secured support from its first three issuers in advance of the announcement, distinguishing its approach from some earlier venue proposals that faced widespread issuer objections.

Partners and Technology Background

Formation Securities builds on Project Open, a proposal submitted in April 2025 to the SEC’s Crypto Task Force by a group that included Orca, Superstate and the Solana Policy Institute. The coalition worked with SEC staff on practical arrangements for on-chain share trading ahead of the Innovation Exemption.

Compliance and monitoring services are expected from Predicate, Sec3, Solidus Labs and TRM Labs. The platform plans to publish transaction data, including prices, volumes and timestamps, with information covering the prior 30 days updated within minutes of each trade. Smart-contract addresses of the liquidity pools will also be disclosed.

Galaxy Digital’s head of firmwide research, Alex Thorn, stated that the Innovation Exemption offers a regulated pathway to explore what the firm expects will become a meaningful segment of U.S. capital markets.

Formation Securities indicated it will continue outreach to additional public companies in the coming months with the goal of expanding the roster of tokenized securities available on the venue.