Formation Securities has notified the SEC that it plans to run a tokenized stock venue on Solana under the agency's innovation exemption. Trading targets an early 2027 start. The filing is a notice of intended operations, not an SEC approval or a launch.
Formation Securities told the SEC it intends to operate a tokenized securities venue on Solana. The firm plans to work under the SEC's innovation exemption, which allows conditional secondary trading of eligible tokenized stocks through permissioned automated market maker pools on qualified venues.
Trading is targeted for early 2027, with tokenized shares of Exodus Movement, Forward Industries and Galaxy Digital set to roll out at launch. Verified investors would reach them through Superstate, Formation Securities' own platform, distribution channels such as Alpaca, and custodians including Anchorage and BitGo Bank.
A notice, not an approval
The step does not amount to SEC approval or a trading launch, The Defiant reported. The SEC's order requires venues to publish their notice at least 30 calendar days before operating. Qualifying venues can run automated liquidity pools without registering as exchanges if they meet the exemption's conditions.
Formation's notice describes permissioned pools: Solana is public, but only approved wallets may trade or supply liquidity. Participants must pass identity, sanctions and anti-money-laundering checks.
Why Solana
Formation said it chose Solana for its reliability, speed and low cost, and because it supports more than $5 billion in tokenized real-world assets. Its tokenized shares will carry the same voting and dividend rights as other shares. Investors will be able to trade around the clock against stablecoins and other eligible assets, settled atomically onchain.
The announcement came after OKXICE, the joint venture between OKX and NYSE parent Intercontinental Exchange, said it would list tokenized shares under the same exemption. While that venue is not live, 67 firms have objected to the tokenization of their shares on it.
Formation says it plans to work together with issuers. According to Christopher Montagano, the firm's president: "we intend to build this market together with issuers". The firm was formed last month through the merger of Orca and Loopscale.
Sources: The Block, The Defiant
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