Formation Securities plans tokenized stock trading on Solana By Investing.com
RWA Signal Insight
StocksFormation Securities LLC has formally notified the U.S. Securities and Exchange Commission of its intent to launch a tokenized securities trading venue on the Solana blockchain by early 2027. Operating under the SEC's Innovation Exemption, the platform will facilitate secondary trading of tokenized stocks, including shares of Exodus Movement, Forward Industries, and Galaxy Digital. The venue aims to provide 24/7 trading capabilities with on-chain settlement, utilizing automated market maker technology licensed from Orca. To ensure regulatory compliance, the platform mandates that tokenized shares retain full voting and dividend rights equivalent to traditional equities. The initiative stems from Project Open, a collaborative proposal involving Orca, Superstate, and the Solana Policy Institute submitted to the SEC in 2025. A robust ecosystem of partners, including Anchorage Digital Bank, BitGo, and Fireblocks, will support custody and distribution for verified investors. This development marks a significant step in integrating traditional equity markets with blockchain infrastructure under a formal regulatory framework.
Key points
- Formation Securities plans a Solana-based tokenized stock venue launching in early 2027.
- The platform operates under the SEC's Innovation Exemption for secondary market trading.
- Initial assets include tokenized shares of EXOD, FWDI, and GLXY.
- Technology partners include Orca, Anchorage Digital Bank, BitGo, and Fireblocks.
Background
The SEC's Innovation Exemption is a regulatory framework designed to allow for the secondary trading of tokenized securities within a controlled environment. It mandates that tokenized assets must mirror the legal rights of traditional shares, such as voting and dividends, while adhering to strict disclosure and customer diligence requirements.