Formation Securities Notifies SEC of Plan to Launch First Tokenized Stock Venue on Solana

Formation Securities has notified the SEC of its intent to operate what would be the first tokenized stock trading venue built on the Solana blockchain, targeting a launch in early 2027. The venue will initially list tokenized shares of Exodus Movement, Forward Industries and Galaxy Digital, with access restricted to verified investors through permissioned automated market makers.

Formation Securities emerged from the merger of Orca and Loopscale, two prominent Solana-native decentralized finance protocols. The firm's plan falls under the SEC's Innovation Exemption, a five-year regulatory sandbox established on September 17, 2026, that allows registered broker-dealers and alternative trading systems to trade tokenized U.S. equities on public blockchains without registering as national securities exchanges, subject to structural constraints including a 75-security cap per venue.

The move positions Formation Securities alongside other firms racing to establish regulated tokenized equity venues under the new SEC framework, including the ICE-OKX joint venture and Securitize, which has already brought tokenized versions of major U.S. stocks to Solana. Formation's venue would be the first on Solana specifically structured around permissioned AMMs for compliant on-chain stock trading.