Formation Securities Aims for Early 2027 Launch of 24/7 Tokenized Stock Venue on Solana Under SEC Exemption

Formation Securities has notified the U.S. Securities and Exchange Commission (SEC) of its plan to launch a 24/7 trading venue for tokenized stocks on the Solana blockchain in early 2027. This venue is intended to operate under the SEC’s temporary Innovation Exemption, a framework that permits verified investors to trade certain U.S.-listed shares while retaining their shareholder rights.

At launch, the venue is expected to offer tokenized shares from companies such as Galaxy Digital, Exodus Movement, and Forward Industries. It may employ automated market maker (AMM) technology, allowing investors to hold securities directly in their personal wallets and settle trades on-chain using stablecoins. To maintain established corporate governance, traditional transfer agents will continue to manage official shareholder records, preserving companies’ direct relationships with their investors.

The SEC’s Innovation Exemption, introduced in September, mandates that trading venues provide written notification to issuers and observe a 30-day waiting period before trading shares tokenized by unaffiliated third parties. This provision allows companies an opportunity to voice objections to the tokenization of their shares.

This initiative emerges amid a broader discussion about the tokenization of publicly traded shares. Reports from early November indicate that over 50 companies have objected to the tokenization of their shares on OKXICE, a proposed venue backed by crypto exchange OKX and Intercontinental Exchange. Additionally, Nasdaq issued a warning in September regarding potential unforeseen consequences of tokenized stock trading on market liquidity, price discovery, and long-term shareholder value.

Solana is already a notable platform for tokenized equities, holding approximately $575 million in tokenized stock value as of Monday, according to data from RWA.xyz. This positions it among other major blockchains in this sector, with Ethereum at around $747 million and BNB Chain at approximately $1.7 billion in tokenized stock value.

Why This Matters

The materials describe a narrow update: Formation Securities, using technology licensed from Orca, has informed the SEC of its intention to launch a trading venue for tokenized shares on the Solana blockchain by early 2027. Whether companies will object to their shares being tokenized on Formation Securities’ venue.

Broader Context

Source materials place the factual news in this context: Formation Securities plans to launch a tokenized stock trading venue on Solana in early 2027.