Formation Plans Solana Tokenized Stock Venue for 2027

Formation Securities has formally notified the U.S. Securities and Exchange Commission (SEC) of its intention to launch a tokenized stock platform on the SolanaSOL-2.92% blockchain in early 2027. This move represents the latest effort to merge conventional stock markets with blockchain technology.

Bringing 24/7 Stock Trading to Solana

The proposed venue aims to let verified investors trade tokenized shares around the clock using stablecoins and other qualified digital assets. Investors who hold these digital tokens will retain standard shareholder privileges, including voting rights and cash dividends.

Unlike traditional equity markets that rely on standard clearing networks, transaction settlements on Formation's platform will happen directly on the Solana network. This setup allows transactions to settle immediately onchain while transfer agents maintain the official shareholder registries.

Key Partners and Initial Equities

Formation plans to launch its platform with initial listings from three public, crypto-focused companies:

• Exodus Movement (NYSE: EXOD)
• Forward Industries (NASDAQ: FWDI)
• Galaxy Digital (NASDAQ: GLXY)

The platform builds on Project Open, an initiative originally submitted to the SEC in April 2025 by Orca, Superstate, and the Solana Policy Institute. Tokenization firms Superstate and Securitize will supply the tokenized shares, while decentralized exchange Orca will provide the underlying trading tech.

Formation plans to operate under the SEC's Innovation Exemption framework introduced in September. This regulatory rule permits approved platforms to facilitate secondary trading of tokenized securities using permissioned automated market maker (AMM) pools.

Access to the trading platform will be available to verified investors through a broad selection of partners:

• Brokerage and custody partners: Alpaca, Anchorage Digital, BitGo, and Fireblocks
• Web3 platforms and interfaces: Passage by CoinList, Solflare, Squads, and Jito's JTX interface

Why Solana Was Chosen

Formation selected Solana due to its transaction processing speed, low network fees, and established infrastructure for real-world assets. The network currently hosts more than $5 billion in tokenized real-world assets (RWAs).

Issuer-Led Strategy vs Corporate Resistance

Formation's business model relies on collaborating directly with public companies rather than listing equities without issuer consent. Christopher Montagano, President of Formation Securities, highlighted this approach in a recent statement.

Tokenized stocks will succeed only if public companies see the value in them, and we intend to build this market together with issuers.

This strategy contrasts with competing venue OKXICE, a joint effort by crypto exchange OKX and Intercontinental Exchange (ICE) on the X Layer network using UniswapUNI-2.55% v4 pools. OKXICE has faced public opposition from 67 corporations that opted out of having their equities tokenized on the platform.

Prominent companies rejecting OKXICE listings include Apple, Microsoft, Amazon, Tesla, Meta, Palantir, S&P Global, KLA, Super Micro Computer, Boeing, Nvidia, and JPMorgan Chase. As a result, OKXICE's target list primarily consists of crypto-linked firms that have not formally objected.

Growing Competition in Securities Tokenization

The push to digitize traditional securities is gaining momentum across major financial institutions. Nasdaq previously announced plans to launch a tokenized securities trading platform in 2027 in partnership with Kraken owner Payward. Additionally, Morgan Stanley recently joined the Depository Trust & Clearing Corporation (DTCC) tokenization initiative for conventional financial products.

Formation's target launch in early 2027 remains subject to SEC regulatory approvals and compliance reviews as market competition around tokenized equities continues to develop.