Formation Targets Early 2027 Start for Tokenized Stock Trading on Solana Platform

Key Facts

Formation aims to launch trading on its tokenized securities platform in early 2027, with tokenized shares in Exodus Movement, Forward Industries and Galaxy Digital available at launch, The Block reported on November 9. The plan comes under a temporary, conditional regulatory exemption issued by the U.S. Securities and Exchange Commission for tokenized securities trading platforms. Formation Securities President Christopher Montagnano said the success of tokenized stocks depends on listed companies seeing value in them, adding: "Tokenized stocks will succeed only if public companies see value in them, and we intend to build this market with issuers." The message puts cooperation with issuers at the center of Formation’s approach, while the exemption aims to enable regulated trading in tokenized shares. The target launch date remains contingent on meeting the exemption’s conditions and the procedures set for the platform.

Formation says investors will be able to trade stocks around the clock against stablecoins and other eligible assets, with transactions settled atomically on-chain, according to The Block. The model enables trading outside traditional stock-market hours, but does not mean the market will be open to the public without restrictions. Shares are expected to be available through Formation’s own platforms and distribution channels including Alpaca, as well as through custody and distribution providers such as Anchorage and BitGo. Superstate and Securitize are also expected to make tokenized shares available on the platform. Formation says tokenized shares will give holders the same voting and dividend rights as other shareholders.

The SEC exemption requires trading to take place through liquidity pools and automated market makers in a restricted environment, and requires the platform to set access standards for authorized participants. The SEC sets conditions relating to the number of eligible shares and trading volume, and also requires the platform to verify that a tokenized share gives its holders the same rights and privileges as a traditional share of the same class. If a party unaffiliated with the issuer tokenized the share, the platform must notify the company in writing and give it an opportunity to object before making the share available for trading. The exemption also requires platforms to publish public notices about their operations and trading activity. The framework therefore combines trading through liquidity pools with controls on eligibility, rights and listing procedures.

The SEC issued the exemptive order on September 17, 2026, and it was published in the Federal Register on September 22, according to the agency’s exemption page. The rules require the platform to clearly publish its notice on a publicly accessible website at least 30 calendar days before operations begin, then send a separate notice to the SEC within one business day of publication. The SEC’s list shows three earlier notices: TSV LLC submitted its notice on September 23, followed by OKX ATS on October 4, and KPHAS Corporation, which operates as Perpetuals.com, on October 14. But a party’s inclusion on the list does not establish that it meets the definition of a tokenized securities platform or has complied with the exemption’s conditions. The exemptions remain in effect for five years from the order’s publication date, while the SEC has requested public comments on potential amendments and next steps.

Formation’s announcement followed OKX ATS’s announcement of plans to list and trade tokenized shares under the exemption, The Block reported. OKX ATS announced its plan before Formation, as multiple entities moved to take advantage of the new regulatory pathway. The proposal’s background goes back to Project Open, which was submitted to the SEC by the Solana Foundation in collaboration with Superstate and Zagrius Services, which operates as Orca Creative. The project proposed initial exemptions and guidance for 18 months, while opening the way for comments and discussion on permanent rules and limiting initial issuance to a pilot group of issuers that could be expanded. As for the shares targeted by the platform, Exodus closed at $4.07, Forward Industries at $5.70 and Galaxy Digital at $13.66 on November 6, according to EL7 data.