Formation Plans 24/7 Tokenized Stock Trading on Solana
Formation Securities targets an early-2027 launch for tokenized EXOD, FWDI and GLXY shares on Solana, with verified access and onchain settlement.
Key Notes
- Formation Securities targets early 2027 for a Solana venue, with tokenized EXOD, FWDI and GLXY shares expected at launch.
- Verified participants would trade through permissioned liquidity pools with onchain settlement and equivalent shareholder rights.
- The SEC notification describes planned operations under a conditional exemption, with trading halts and volume limits still applicable.
Formation Securities has notified the U.S. Securities and Exchange Commission that it plans to operate a market for tokenized stocks on Solana, targeting an early-2027 launch. Exodus Movement (EXOD), Forward Industries (FWDI) and Galaxy Digital (GLXY) are expected to be its first listings.
The proposed venue would let verified investors trade around the clock using stablecoins and other eligible assets, with settlement on the blockchain. Formation’s November 9 announcement says token holders would retain the voting, dividend and other rights associated with equivalent traditional shares. The company has not announced an exact opening date.
Orca Technology Will Power the Market
Formation will license trading technology from Orca. Investors would transact against permissioned automated market maker pools, where software prices trades using available liquidity, rather than a conventional order book of buyers’ and sellers’ bids.
Its operating notice describes a non-custodial interface. Investors would connect wallets controlled by themselves or their custodians. Formation says it will neither hold participants’ assets or private keys nor extend credit or conduct primary securities offerings.
Trades would settle atomically: the shares and payment transfer together in one Solana transaction, or the exchange does not complete. That removes a separate settlement step, although a failed transaction can still incur network fees.
Shareholder Rights Remain Central
Superstate and Securitize are expected to make tokenized shares available. Planned access channels include Alpaca, Passage by CoinList, Solflare and Squads, alongside Formation’s own platform and participating custodians.
Formation says it will examine each token’s backing and legal structure before admitting it, including dividend payments, voting instructions and corporate actions. It would stop offering a token if equivalent shareholder rights ceased to apply.
Those arrangements matter because tokenized stocks can represent different legal claims. CoinScreamer’s Securitize coverage explained how its share-backed entitlement tokens differ from direct registration on a company’s shareholder ledger.
SEC Framework Sets Conditions for Trading
Formation intends to rely on the SEC’s Innovation Exemption, which permits qualifying venues to host limited secondary trading through permissioned liquidity pools. The SEC’s staff guidance requires a public operating notice at least 30 calendar days before trading begins.
The notification does not establish SEC approval of Formation. The regulator’s exemption page says even inclusion on its list of notifying firms does not establish compliance or endorse a venue’s disclosures.
Participants must complete identity, sanctions and wallet checks, and token providers may impose separate approvals. Trading would pause for applicable halts in the underlying shares and when required by volume limits. Pool prices can diverge from conventional stock prices, particularly when liquidity is thin.
The plan follows completed CNTN trades on Canton under the same framework. Formation’s next steps include publishing fees, final trading pairs and deployed contract addresses before its own market opens.
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