Formation Securities Targets Early 2027 Launch for Solana-Based Tokenized Stock Trading Platform
Formation Securities plans to introduce a tokenized securities trading platform on the Solana blockchain in early 2027, aiming to bring regulated U.S. equities onto blockchain infrastructure while allowing verified investors to trade around the clock.
The company has notified the U.S. Securities and Exchange Commission (SEC) of its plans. The proposed venue will support tokenized shares traded using stablecoins and other eligible assets, while preserving shareholder rights associated with traditional equities, including voting and dividend entitlements.
Formation's initial lineup is expected to include Exodus Movement (NYSE: EXOD), Forward Industries (NASDAQ: FWDI), and Galaxy Digital (NASDAQ: GLXY). All three companies operate within the cryptocurrency industry.
Tokenization firms Superstate and Securitize are expected to provide the securities available on the platform. Its trading infrastructure will use technology licensed from Orca, a decentralized exchange operating on Solana.
How Formation's Solana Trading Platform Will Work
The proposed venue is designed to operate under the SEC's Innovation Exemption, introduced in September. The framework permits qualifying trading venues to facilitate secondary-market transactions involving tokenized securities through permissioned automated market maker liquidity pools, subject to regulatory conditions.
Unlike conventional stock markets, where transactions and settlement typically involve established financial intermediaries, Formation intends to process trades directly on the Solana blockchain. Investors will hold tokenized shares in digital wallets, with transactions designed to execute and settle simultaneously onchain.
Formation also said the structure would maintain existing relationships between public companies and their shareholders. Transfer agents would continue managing official ownership records, connecting blockchain-based trading activity with the established securities ownership framework.
Formation Securities President Christopher Montagano emphasized the importance of working directly with companies issuing the underlying shares.
"Tokenized stocks will succeed only if public companies see the value in them, and we intend to build this market together with issuers," Montagano said in a statement.
Formation Names Distribution and Infrastructure Partners
Formation has outlined a distribution network involving several cryptocurrency and digital asset infrastructure companies. The named participants include Alpaca, Passage by CoinList, Anchorage Digital, BitGo, Fireblocks, Solflare, Squads, and Jito's JTX trading interface.
Access to the proposed platform will be restricted to verified investors.
The company selected Solana based on its transaction speeds, relatively low fees, and existing tokenization infrastructure. Formation noted that the blockchain already supports more than $5 billion in tokenized real-world assets.
The proposed trading venue also builds on Project Open, an initiative submitted to the SEC in April 2025 by a coalition that included Orca, Superstate, and the Solana Policy Institute.
Tokenized Stock Platforms Face Corporate Resistance
Formation's plans emerge as financial companies increasingly explore blockchain-based securities trading. However, the expansion of tokenized equities has encountered resistance from publicly traded companies concerned about platforms offering digital representations of their shares.
According to Bitcoin.com News, 67 companies have objected to plans by OKXICE, a joint venture between cryptocurrency exchange OKX and New York Stock Exchange owner Intercontinental Exchange (ICE), to introduce tokenized versions of U.S. stocks.
Among the latest companies raising objections are Meta, Palantir, S&P Global, KLA, and Super Micro Computer. They join earlier objectors including Apple, Boeing, Microsoft, Nvidia, Amazon, Tesla, and JPMorgan Chase.
The objections have left OKXICE with predominantly cryptocurrency-related companies among its original targeted issuers that have not opted out.
OKXICE intends to use the same SEC exemption framework for its proposed platform. Its model involves permissioned Uniswap v4 liquidity pools operating on OKX's X Layer blockchain. However, its broader strategy of targeting major American publicly traded companies has faced considerable issuer resistance.
Formation is pursuing a different approach by emphasizing direct cooperation with public companies. Whether that strategy can support its planned launch will depend on regulatory requirements and participation from the companies whose shares it intends to tokenize.
Nasdaq and Morgan Stanley Also Advance Tokenization Plans
Formation is entering a market that is attracting participation from established financial institutions. Nasdaq has announced plans to launch a tokenized securities trading venue in 2027 through a partnership with Payward, the parent company of Kraken.
Morgan Stanley has also disclosed its participation in a new tokenization service for traditional financial assets developed by the Depository Trust & Clearing Corporation.
Formation's proposed early 2027 launch would add another participant to the growing competition over blockchain-based securities infrastructure. By combining Solana's blockchain technology with regulated securities and established transfer-agent records, the company aims to develop an alternative model for trading tokenized U.S. equities.
source: news.bitcoin
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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