Formation Plans First Tokenized Securities Venue on Solana

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The firm filed a public notice dated November 9, 2026. In it, Formation says it will operate the venue under a new federal exemption. Still, the notice is only a statement of intent, not an approval.

Formation is itself new. It came out of the October 2026 merger of Orca and Loopscale, two Solana-native teams. Now it wants to turn that tech into a regulated stock market onchain.

Notice Is Not SEC Approval

First, the key caveat. Notifying the SEC is not the same as getting registered or approved.

Formation relies on the SEC’s Innovation Exemption from September 17, 2026. That order temporarily exempts qualifying venues from the definition of an “exchange.” As a result, a tokenized securities venue on Solana can trade certain tokenized stocks without a full exchange license.

The notice itself is blunt about this. It states that neither Formation nor the venue is registered for these activities. It also says the SEC “has not passed upon the merits or accuracy of the disclosures.”

The exemption runs for five years, until September 17, 2031. So the window is real, but it is temporary.

It also comes with strings. For instance, venues face symbol and volume caps tied to limit-up and limit-down tiers. They must coordinate trading halts with the primary exchange. On top of that, they must keep the smart contracts public and auditable. They also must post public notice at least 30 days before trading starts.

The pathway did not appear overnight. Back in April 2025, a coalition called Project Open pitched the idea to the SEC’s Crypto Task Force. According to Formation, Orca, Superstate, and the Solana Institute all took part. That work later shaped the September 2026 order under Chair Paul Atkins.

What the Tokenized Securities Venue on Solana Would Do

In short, the venue would run a permissioned market for tokenized versions of real stocks. These are not synthetics. Instead, each token must carry the same voting, dividend, and other rights as the underlying share.

Trading would run through permissioned AMM liquidity pools on Solana. Only verified wallets could take part. So every participant must first clear KYC, AML, and sanctions checks.

Settlement would happen atomically onchain. In practice, the stock token and the payment asset change hands in a single Solana transaction. Therefore the traditional T+1 settlement delay disappears.

The venue itself would hold no custody. Instead, users rely on self-custody or on partner custodians. Trading is meant to run 24/7, though primary-market halts, volume limits, and symbol caps still apply.

The Stocks and Partners Lined Up

Formation targets an early-2027 launch. At that point, it anticipates three initial listings: Exodus Movement (EXOD), Forward Industries (FWDI), and Galaxy Digital (GLXY).

Tokenization would run through Superstate and Securitize, working with transfer agents. Notably, Superstate’s Opening Bell platform already tokenized Galaxy and Forward shares on Solana.

Access would come through several front ends and custodians. For example, users could reach the market via Formation’s platform, Alpaca, Passage by CoinList, Jito, Solflare, and Squads. Custody partners include Anchorage Digital Bank, BitGo, and Fireblocks.

Issuers keep some control, too. Under the exemption, companies hold notice and objection rights when a third party tokenizes their stock. So the initial lineup remains anticipated, not confirmed.

Why Formation Chose Solana

The technology is the reason for the choice. Formation licenses Orca’s permissioned AMM, router, and aggregator stack. Luke Truitt, the Loopscale co-founder, now leads the combined firm as CEO.

That track record is the pitch. According to Formation, Orca’s AMM has processed more than $550 billion in volume since 2021. Certora has also formally verified it, and it has passed 11 audits across four firms.

Christopher Montagano, Formation Securities president, framed the choice directly. “We chose Solana for its reliability, speed, low cost and established track record with the trading of tokenized assets,” he said in the company’s announcement thread.

Markets stayed calm on the news. SOL traded in the mid-to-high $80s on November 9, and no clear volume spike followed the midday announcement. Meanwhile, Solana’s RWA footprint sits near $5.1 billion by rwa.xyz data, though other dashboards show less.

Solana still trails Ethereum on total RWA value. Even so, the chain already hosts tokenized stocks and funds. For Formation, that existing activity plus Orca’s liquidity tooling makes Solana the natural home for the project.

What Comes Next

For now, the venue is not live. No onchain contracts, program IDs, or trades exist yet for the tokenized securities venue on Solana. Everything points to early 2027.

Several questions stay open. For instance, will issuers consent, which other stocks join, and how will the SEC respond during the five-year window? CoinDesk also notes Formation is the fourth firm to announce a venue under the framework.

Even so, the direction is clear. Big names want regulated, rights-preserving stock tokens trading onchain, and they want them soon. The early-2027 launch will test whether a tokenized securities venue on Solana can draw real liquidity.

This article is for information only and is not financial advice. Always do your own research before making any investment decision.