Formation plans early 2027 Solana launch for 24/7 tokenized stocks

Formation Securities plans to launch a Solana-based venue for 24/7 trading of tokenized U.S. stocks in early 2027, according to its Nov. 9 announcement and public filing with the U.S. Securities and Exchange Commission. The expected first securities are Exodus Movement (EXOD), Forward Industries (FWDI) and Galaxy Digital (GLXY), with launch contingent on conditions in the SEC’s Innovation Exemption.

How would the venue operate?

Verified investors who complete identity verification and meet applicable eligibility requirements could buy and sell eligible tokenized versions of U.S.-listed shares around the clock. They would use stablecoins and other permitted assets, hold tokenized shares in digital wallets and settle transactions directly on Solana.

In each transaction, buyers would receive securities and sellers would receive payment through the same blockchain transaction. Formation says the tokenized securities would carry the same shareholder rights as traditional stocks, including voting rights and dividend payments.

Formation would use Superstate and Securitize to make eligible securities available through the platform. Access would be distributed through Formation and partners including Alpaca, Passage by CoinList, Anchorage Digital Bank, BitGo Bank & Trust, Fireblocks, Solflare and Squads.

Formation Securities President Christopher Montagano said: “Tokenized stocks will succeed only if public companies see the value in them, and we intend to build this market together with issuers.” Formation says it intends to work directly with issuers.

What does the SEC framework require?

Formation’s proposal follows the SEC’s Sept. 17 decision allowing venues for certain tokenized securities to operate under temporary regulatory exemptions. The Innovation Exemption permits qualifying tokenized securities to trade through approved arrangements without requiring an operator to register as a traditional securities exchange.

Under the framework, eligible stocks would trade through permissioned automated market maker pools, where smart contracts facilitate transactions against available liquidity under predefined rules. The structure differs from conventional exchanges, which match buyers and sellers through order books.

Participating venues must maintain limits on trading volumes and the number of securities offered. They must also verify that tokenized shares carry equivalent rights to their traditional counterparts and provide public disclosures about trading activity.

Operators must publish their proposed arrangements at least 30 days before opening, and submitting a notice does not establish SEC approval or confirm compliance. Formation has not started trading, and its launch remains subject to the exemption’s conditions. Its filing says the platform would review tokenization structures before admitting shares.

How does the plan fit existing tokenized-stock activity?

Formation’s plans follow the launch of several blockchain-based stock products and trading arrangements involving existing securities firms. On Nov. 4, Canton Strategic Holdings completed tokenized stock transactions on Canton Network under the SEC’s September exemption, as crypto.news reported.

In October, Securitize confirmed that 12 tokenized U.S. stocks were available on Solana for eligible investors, including products referencing Apple, Nvidia and Tesla. Its products use security entitlements backed by shares held through a broker-dealer and require investors to complete onboarding.

The underlying companies have not necessarily sponsored those tokenized offerings. The exemption requires venues to give companies an opportunity to object before admitting securities tokenized by an unaffiliated third party.

Which technology and disclosures would support the venue?

Formation licensed trading technology from Solana decentralized exchange Orca, whose automated market maker software processed more than $550 billion in digital-asset trades through Oct. 31, according to the company. The venue builds on Project Open, submitted to the SEC’s Crypto Task Force in April 2025 by a coalition including Orca, Superstate and the Solana Policy Institute.

Formation named Predictive, Sec3, Solidus Labs and TRM Labs as compliance and transaction-monitoring service providers. Its public notice calls for publishing transaction information, including prices, trading volumes and timestamps.

The platform would also publish smart-contract addresses for its liquidity pools, daily share volumes and pool balances. Applicable transfer agents would maintain official shareholder records.

Transaction data covering the preceding 30 days would update within 10 minutes of each trade. Submitting the notice does not establish SEC approval or compliance.

Formation must publish its proposed arrangements at least 30 days before opening; its Nov. 9 notice neither approves the venue nor establishes compliance. The early 2027 launch remains conditional on the exemption’s conditions, equivalent-rights verification and public-disclosure requirements.