Formation notifies SEC to operate first tokenized securities venue on Solana
RWA Signal Insight
StocksFormation Securities has officially notified the U.S. Securities and Exchange Commission of its intent to launch a tokenized securities venue on the Solana blockchain by early 2027. The platform aims to leverage the SEC's innovation exemption to facilitate secondary trading of tokenized stocks, including shares of Exodus Movement, Forward Industries, and Galaxy Digital. By utilizing permissioned automated market maker pools, the firm intends to offer 24/7 trading and atomic onchain settlement while maintaining standard shareholder voting and dividend rights. Formation Securities, a recent merger between Orca and Loopscale, selected Solana for its high throughput and existing ecosystem of over $5 billion in tokenized assets. The firm plans to collaborate directly with issuers to avoid the resistance faced by competitors like OKXICE, which has encountered objections from 67 firms regarding the tokenization of their shares. Distribution will be supported by partners including Superstate, Alpaca, Anchorage, and BitGo Bank. This development marks a significant step in the institutional push to modernize equity markets through blockchain-based infrastructure and regulatory-compliant frameworks.
Key points
- Formation Securities plans to launch a Solana-based tokenized stock venue by early 2027.
- Initial assets include tokenized shares of Exodus Movement, Forward Industries, and Galaxy Digital.
- The platform will operate under the SEC's innovation exemption for secondary market trading.
- Formation Securities was formed via the merger of Solana-based DEX Orca and Loopscale.
Background
Formation Securities is a newly established entity resulting from the merger of the decentralized exchange Orca and the firm Loopscale. The company focuses on building onchain financial infrastructure, specifically targeting the tokenization of traditional securities to improve settlement speeds and market accessibility.