Formation Securities notified the U.S. Securities and Exchange Commission on November 9 that it intends to operate a tokenized securities venue on Solana. The firm expects trading to begin in early 2027 under the SEC’s Innovation Exemption, with tokenized shares of Galaxy Digital (GLXY), Exodus Movement (EXOD), and Forward Industries (FWDI) planned for the initial lineup.

The venue would use permissioned automated market maker pools built on technology licensed from Orca. Eligible tokenized stocks must provide the same rights as the underlying shares, including voting rights and dividends. Trades would settle atomically on Solana in a single transaction. Formation itself would not hold customer assets or private keys.

How the venue is structured

The setup follows the temporary Innovation Exemption the SEC issued in September 2026. That framework allows qualifying venues to host secondary trading of certain tokenized National Market System stocks through permissioned AMM pools on public blockchains. The exemption runs for up to five years and is subject to conditions such as equivalent shareholder rights, public notice, and trading halts that match stoppages in the underlying shares.

Formation’s notice starts a 30-day window during which the SEC can engage with the filer, ask questions, or request amendments. The company is targeting an early January 2027 launch if the process proceeds as planned. Unlike many existing tokenized stock products that offer only economic exposure or synthetic tracking, Formation’s tokens are intended to represent actual tokenized stock with the same entitlements as traditional shares. The official shareholder register stays with the transfer agent, and issuers maintain their direct relationship with shareholders.

Access is limited to verified participants. A wallet needs approval both from Formation for venue access and from the relevant tokenizer to hold or receive a particular stock token. Investors could then use approved self-custody wallets or participating custodians. Identity verification, wallet screening, and market surveillance are handled by third parties including Predicate, TRM Labs, and Solidus Labs. Independent smart-contract review is also part of the plan.

Tokenization partners include Superstate and Securitize. Distribution channels listed in the notice include Alpaca Markets, CoinList’s Passage, and wallets such as Solflare and Squads, along with custodians like Anchorage Digital Bank, Fireblocks, and BitGo. Each tokenized stock would be paired with a non-security crypto asset or tokenized money market fund. If a transaction fails, the asset transfers do not occur, though network fees may still apply.

BREAKING: Formation Securities (@formation_so) notifies the SEC of its intent to operate the first tokenized securities venue on Solana.

U.S.-listed shares with the same voting and dividend rights as the originals, settling atomically onchain, 24/7. https://t.co/SO4Jbnz4ci

— Solana (@solana) November 9, 2026

Why Solana and what it means for the network

Formation selected Solana for its speed, cost, and existing infrastructure supporting tokenized financial assets. The network already hosts more than $5 billion in tokenized real-world assets, according to recent figures cited in the announcement. Solana has also ranked among the busiest chains for tokenized stock trading volume in recent months, with billions changing hands even as other networks compete for the same activity.

The filing adds a regulated secondary-trading venue aimed at U.S.-listed shares that preserve shareholder rights. It is the first such venue notice specifically for Solana under the Innovation Exemption. Other firms have filed similar notices on different setups, but Formation’s approach centers on permissioned AMM pools on a public, permissionless blockchain while still meeting the exemption’s conditions.

Christopher Montagano, Formation Securities co-founder and president, has described the product as actual tokenized stock rather than a derivative or synthetic alternative. He noted that the team’s earlier work with Orca and related proposals helped shape elements that later appeared in the Innovation Exemption. The venue is not for primary offerings; it is designed as a secondary market for existing U.S.-listed shares.

What to watch next

The next steps depend on the SEC’s response during the 30-day clock and any subsequent engagement. Issuer consent is also required for the specific stocks. At launch the venue is expected to carry the three named companies, with additional tokenized shares from Superstate and Securitize expected over time. Trading would run 24/7 in the permissioned pools, subject to the exemption’s halt rules when the underlying markets are stopped.

For Solana, a venue that combines atomic settlement, self-custody options, and preserved shareholder rights would sit alongside the existing mix of tokenized equity products already live on the network. Those products vary widely in structure, rights, and access rules. Formation’s notice does not guarantee the venue will go live on the stated timeline, and neither Formation nor the venue is registered with the SEC for the exempted activities. The SEC has not passed on the merits or accuracy of the notice’s disclosures.

The filing is one of the more concrete steps so far toward regulated on-chain secondary trading of U.S. equities that carry traditional shareholder entitlements. Whether it reaches the early 2027 target, and how volume develops once it does, will depend on regulatory engagement, issuer participation, and actual trader demand on Solana.