Solana Set for Another Tokenized Stock Venue as Formation Notifies the SEC

A new firm is lining up to become one of the first to trade tokenized U.S. stocks onchain, notifying the Securities and Exchange Commission that it intends to run a tokenized securities venue on Solana.

Formation Securities said Monday it had filed the notice to operate under the SEC's “Innovation Exemption,” the conditional relief the agency issued in September that lets eligible tokenized stocks trade through permissioned automated market maker pools on qualifying venues.

Trading is expected to begin in early 2027, with tokenized shares of Exodus Movement, Forward Industries and Galaxy Digital anticipated at launch.

The pitch is to deliver the benefits of blockchain trading, 24/7 markets and near-instant settlement, without stripping away the rights investors expect from real stock.

Under the exemption, eligible tokens must carry the same voting and dividend rights as traditional shares, and each trade settles atomically onchain, a feature meant to cut settlement risk. A company's transfer agent still keeps the official shareholder record, while every trade posts to 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 Christopher Montagano, president of Formation Securities, which licenses its trading technology from Solana-based exchange Orca.

Tokenization firms Securitize and Superstate are expected to supply tokenized shares, with Securitize CEO Carlos Domingo noting its tokens are each backed by a real share held by its broker-dealer.

Access will be limited to verified investors, who can reach the venue through Formation's platform and distributors including Alpaca, CoinList's Passage, custodians Anchorage, BitGo and Fireblocks, and wallet providers Solflare and Squads.

The move adds another entrant to a fast-crowding race to put stocks onchain. The NYSE recently tapped Solana rival Avalanche to settle its own planned tokenized securities platform, Securitize launched tokenized stocks on Solana, and an OKX-ICE venue is also in the works, though every Magnificent Seven stock opted out of that one.

The effort builds on Project Open, a proposal a coalition including Orca, Superstate and the Solana Policy Institute submitted to the SEC in 2025.

Formation chose Solana, it said, for its speed, low costs and track record with tokenized assets, noting the network hosts more than $5 billion in tokenized real-world assets.