Formation Securities LLC has notified the U.S. Securities and Exchange Commission of plans to launch a Solana-based venue for trading tokenized U.S. stocks, targeting an early 2027 debut with shares of Exodus Movement, Forward Industries and Galaxy Digital among the first securities available.
The proposed platform would operate under the SEC's Innovation Exemption, a five-year conditional framework for secondary trading in eligible tokenized securities. Formation Securities says the structure would let verified users hold shares in self-custodied digital wallets and trade around the clock, while retaining the voting, dividend and other shareholder rights attached to conventional listed stock.
The plan places public-company shares directly into Solana's onchain trading environment, using permissioned automated market maker pools rather than a conventional central order book. An automated market maker, or AMM, uses pooled assets and a programmed pricing formula to facilitate trades without requiring a buyer and seller to submit matching orders at the same moment.
Formation Securities' public notice says a transfer agent would remain responsible for the official shareholder register. The blockchain would record trading activity, while the transfer agent's books would continue to determine legal ownership. That division is intended to preserve the corporate-law functions of traditional securities infrastructure while allowing onchain settlement and wallet-based custody.
Launch would begin with three listed companies
Formation Securities expects tokenized shares of Exodus Movement, Inc. (NYSE: EXOD), Forward Industries, Inc. (NASDAQ: FWDI), and Galaxy Digital Inc. (NASDAQ: GLXY) to be available when trading starts. The company did not provide a precise launch date beyond early 2027.
The availability of each security would be subject to the Innovation Exemption's requirements and issuer procedures. Under the framework described by Formation Securities, companies receive a 30-day notice period before their stock can be admitted to trading, giving issuers an opportunity to object.
Superstate and Securitize are expected to provide tokenized shares for the venue. Formation Securities said access would be offered through its own platform and through channels involving Alpaca, Passage by CoinList, Anchorage Digital Bank, N.A., BitGo Bank & Trust, National Association, Fireblocks, Jito's JTX trading interface, and wallet providers Solflare and Squads.
The proposed network would be restricted to verified participants rather than open to every Solana wallet by default. Formation Securities said users would have to meet customer-identification and diligence requirements before accessing the pools. The token infrastructure would also apply permissioning and transfer restrictions, allowing the platform to control which wallets can receive or move securities tokens.
That model preserves a central compliance gate even though the assets are meant to reside in user-controlled wallets. It also limits one of the common practical differences between tokenized securities and freely transferable crypto assets: holding a stock token would not automatically mean it can be sent to any address on a public blockchain.
SEC framework sets size and volume limits
The SEC's Innovation Exemption, released in September 2026 according to Formation Securities, provides the regulatory basis for the planned venue. The exemption is structured as a temporary program scheduled to expire in 2031 and includes limits on the number of securities and the amount of trading allowed.
Formation Securities said the first tier permits up to 75 securities and caps daily trading volume at 0.25% of the prior month's average daily share volume. A second tier can accommodate up to 250 symbols, subject to its own operating conditions. The framework also requires public disclosures, customer diligence measures, and procedures for operational disruptions.
Those limits could shape the venue's early liquidity. A tokenized stock may be available for continuous trading, but the daily cap would constrain the amount that can move through the onchain market. That makes the initial program more suited to testing settlement, custody and shareholder-rights mechanisms than to immediately shifting large portions of listed-equity volume onto blockchain rails.
Formation Securities said trades would settle atomically onchain, meaning the securities token and payment asset would transfer in the same transaction or neither transfer would occur. Users are expected to trade against stablecoins and other assets permitted under the framework.
The company also said token holders could use eligible shares in approved onchain applications. Any such use would remain bounded by the token's transfer rules and the venue's participant-verification requirements, rather than creating unrestricted composability across decentralized finance applications.
Solana infrastructure and orca technology underpin the venue
Formation Securities selected Solana for the venue and cited the network's existing tokenized-asset activity, transaction speed and low transaction costs. The company said Solana hosts more than $5 billion in tokenized real-world assets, though that figure includes assets beyond equities.
The project stems from Project Open, a proposal submitted to the SEC's Crypto Task Force in April 2025 by a coalition including Orca, Superstate and the Solana Policy Institute. Formation Securities said this work preceded the SEC's Innovation Exemption.
The firm is licensing AMM technology from Orca, a Solana-based protocol that began operating in early 2021. Formation Securities said users had traded more than $550 billion in digital assets through Orca's AMM software as of October 31, 2026. It added that Certora formally verified the software and that four independent security firms conducted 11 audits.
Predicate, Sec3, Solidus Labs and TRM Labs are also expected to provide services at launch, according to Formation Securities. Christopher Montagano serves as the company's president.
The venue's prospects will depend on whether listed companies agree to participate, whether token issuers can maintain reliable links between onchain records and official shareholder registers, and whether the SEC's pilot limits allow enough activity to create usable liquidity. Formation Securities' proposal offers an early test of whether tokenized equities can deliver continuous, wallet-based trading without separating stockholders from the legal rights attached to their shares.
Curious about tokenized equities and RWA on Solana? Dive deeper with our guide on tokenized equities today.
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