Formation Securities to Launch Solana's First Tokenized Stock Venue in 2027

Formation Securities has notified the U.S. Securities and Exchange Commission of plans to run the first tokenized stock trading venue on Solana, with trading expected to begin in early 2027, the company told CoinDesk.

The venue will operate under the SEC's innovation exemption, a five-year framework that lets qualifying platforms experiment with trading tokenized U.S. equities. Three publicly traded companies have already signed on: Galaxy Digital (GLXY), Exodus Movement (EXOD) and Forward Industries (FWDI).

Formation is the fourth firm to announce a tokenized securities venue, or TSV, under the framework. It follows OKXICE — the joint venture between NYSE parent Intercontinental Exchange and crypto exchange OKX — plus Canton-based TSV LLC and Perpetuals.com.

How the exemption works

The SEC framework allows approved venues to trade tokenized U.S. stocks through automated market makers, software that executes trades against pools of assets rather than traditional order books. Participation is restricted to verified investors, and the rules cap both trading volume and the number of securities a venue can offer.

That structure matters for Solana. The chain already ranks third behind Ethereum and BNB Chain in the value of stock tokens outstanding — roughly $570 million of a $3.8 billion market, according to RWA.xyz data. It was also the busiest blockchain for trading activity, with more than $7 billion in tokenized stocks changing hands over the past week.

Much of that volume, though, comes from synthetic stock tokens. These are derivative products that track share prices without conveying ownership or shareholder rights in the underlying companies. A regulated venue trading issuer-approved tokens would give investors actual equity exposure on-chain, a structural upgrade over the synthetic products dominating current activity.

Why Formation started with willing issuers

Under the SEC's rules, companies have 30 days to block trading of their shares when a third party tokenizes them without permission. That window has already produced friction.

OKXICE tested it first. Of the 62 companies it initially selected, roughly 90% had objected as of Friday, according to a CoinDesk tally. Apple, Microsoft and Meta were among those that rejected the plans.

Formation took the opposite route. It secured the backing of its first three issuers before announcing the venue, Christopher Montagano, the firm's president, told CoinDesk in an interview.

The initial roster leans on companies already comfortable with tokenization. Tokenized shares of Galaxy and Forward Industries are listed on Superstate's Opening Bell platform, and Exodus was among the first companies to issue its shares in tokenized form through Securitize.

What happens next

The 2027 launch date gives Formation time to clear the SEC's qualifying conditions and onboard verified investors within the framework's limits. The immediate question is whether more issuers follow Galaxy, Exodus and Forward — or whether the venue launches with the same issuer-by-issuer friction that met OKXICE's opt-out approach.