Formation files notice for Solana tokenized stock venue

Under a temporary SEC framework for permissioned trading of tokenized U.S. stocks, Formation Securities has notified the commission of its intent to operate a tokenized securities venue on Solana. The company’s public notice describes the planned venue and its trading controls.

The filing sets out how an onchain venue would handle access, liquidity and settlement for tokenized shares while operating under the SEC’s conditional framework.

Formation says trading is expected to begin in early 2027, with Forward Industries (FWDI), Galaxy Digital (GLXY) and Exodus Movement (EXOD) among the intended launch listings, according to The Block’s report on the announcement. The company’s notice, dated Nov. 9, says each stock would trade in a pair with a non-security crypto asset or a tokenized money market fund.

How would trading work on Solana?

The notice says trades would execute through permissioned automated market maker liquidity pools using licensed versions of Orca’s concentrated-liquidity contracts and a Formation router. The router is an offchain service that compares quotes across eligible pools and presents an available route. Formation says the venue will not use an order book, custody participants’ assets or private keys, extend credit, or conduct primary securities offerings.

Only wallets approved by the venue could trade or provide liquidity. The notice describes identity and entity checks, sanctions and anti-money-laundering screening, and wallet screening; tokenizers could also impose separate approval requirements for their tokens. Approved participants would submit trades from their own or custodial wallets to Solana smart contracts, with each swap settling in one blockchain transaction.

What does the SEC notice allow?

The SEC’s temporary exemption permits qualifying venues to bring buyers and sellers together through permissioned AMM pools, subject to conditions. Formation’s notice says the venue intends to operate under that exemption. It also says Formation and the venue are not registered with the SEC for these activities and that the SEC has not passed on the notice’s merits or accuracy; Formation’s website says operations have not commenced.

The planned tokens are intended to carry the same rights as equivalent traditional shares, including voting and dividend rights. Formation says it will review tokenization structures and evidence of those rights before admitting a stock to trading. For tokens issued by an unaffiliated third party, the notice says the venue must notify the issuer and wait out the applicable objection period before trading starts.

The exemption is temporary and conditional, and the notice describes the venue’s operational obligations, including participant eligibility controls and disclosures. Formation says the venue is intended to operate around the clock, subject to trading stoppages. Its proposed model therefore combines Solana-based settlement with restricted access and controls tied to the underlying listed stocks.

Sources

• public notice — formationsecurities.com
• The Block’s report on the announcement — theblock.co