Formation Securities Notifies SEC of Intent to Operate First Tokenized Securities Venue on Solana

Eligible tokenized shares must preserve traditional shareholder rights, while the venue will face securities and trading-volume limits.

Rhea-AI Summary

Formation Securities notified the SEC that it intends to operate a tokenized securities trading venue on the Solana blockchain. Trading is expected to begin in early 2027, with tokenized shares of Exodus Movement (NYSE: EXOD), Forward Industries (NASDAQ: FWDI) and Galaxy Digital (NASDAQ: GLXY) anticipated at launch.

The venue plans to operate under the SEC's Innovation Exemption, which permits conditional secondary trading of eligible tokenized stocks. Access will be restricted to verified participants, with limits on listed securities and trading volume. Eligible shares must retain traditional voting and dividend rights. Superstate and Securitize are expected to make tokenized shares available on the venue, which will use trading technology licensed from Orca.

Positive

• Minor point. Forward-looking: it has not happened yet and may not happen.Formation Securities expects trading to begin in early 2027 on its planned Solana venue.
• Minor point. Forward-looking: it has not happened yet and may not happen.Tokenized Exodus Movement, Forward Industries and Galaxy Digital shares are anticipated to be available at launch.
• Minor point. Forward-looking: it has not happened yet and may not happen.Superstate and Securitize are expected to make tokenized shares available on the venue.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.The planned venue must operate under Innovation Exemption conditions, including securities and trading-volume limits.
• Minor point. Forward-looking: it has not happened yet and may not happen.Venue access will be limited to verified participants, with mandated customer diligence and public disclosures.

Key Figures

Expected trading start: Early 2027 Trading availability: 24/7

Expected trading start

Early 2027

Venue launch

Trading availability

24/7

Venue operating terms

Key Terms

self-custody, automated market maker, distributed ledger, stablecoins

4 terms

self-custody technical

"combines self-custody and around-the-clock trading"

Self-custody means an investor holds and controls their own financial assets—such as stocks, bonds, or digital tokens—rather than leaving them with a broker, bank, or other third party. It matters because it gives the owner full control and direct access (like keeping cash in a personal safe instead of a bank vault), but also shifts all responsibility for security, backups, and recovery to the individual, affecting risk and liquidity.

automated market maker technical

"permissioned automated market maker (AMM) liquidity pools"

An automated market maker is a computer program that allows people to buy and sell assets quickly and smoothly without needing a traditional middleman like a broker. It works by using algorithms to set prices automatically based on supply and demand, much like a vending machine that provides snacks at prices adjusted to how many people want them. This makes trading more accessible and efficient for investors.

distributed ledger technical

"recorded instantly on a public, permissionless distributed ledger"

A distributed ledger is a digital record of transactions that is shared and synchronized across multiple computers or locations. Unlike a traditional record kept in one place, it allows many parties to see and verify the same information simultaneously, making it more transparent and harder to alter. This technology matters to investors because it can increase trust, reduce the need for middlemen, and improve the efficiency of recording and verifying transactions.

View in glossary

stablecoins financial

"trade them 24/7 against stablecoins and other eligible assets"

Stablecoins are a type of digital currency designed to maintain a steady value, often linked to traditional currencies like the dollar or euro. They function like digital cash that offers the convenience of online transactions while avoiding the large price swings common with other cryptocurrencies. This stability makes them useful for investors and users who want a reliable way to store and transfer value without exposure to sudden market changes.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Venue combines self-custody and around-the-clock trading with the same voting, dividend and other rights as traditional U.S.-listed shares

Designed to work with public companies under the conditions of the SEC's Innovation Exemption

NEW YORK, Nov. 9, 2026 /PRNewswire/ -- Formation Securities LLC today notified the U.S. Securities and Exchange Commission that it intends to operate a tokenized securities venue (TSV) on Solana, a public, permissionless blockchain.

Formation Securities, a business licensing trading technology from Orca, intends to operate under the SEC's Innovation Exemption. The conditional exemption permits secondary trading of eligible tokenized stocks through permissioned automated market maker (AMM) liquidity pools on qualifying venues. Eligible tokenized stocks must provide the same rights and privileges as traditional shares, including voting and dividend rights. The public notice is available at https://formationsecurities.com/notice/.

Trading is expected to begin in early 2027, with tokenized shares of Exodus Movement, Inc. (NYSE: EXOD), Forward Industries, Inc. (NASDAQ: FWDI) and Galaxy Digital Inc. (NASDAQ: GLXY) anticipated to be available at launch. Superstate and Securitize are expected to make tokenized shares available on the venue. Verified investors are expected to be able to access the venue through the Formation Securities platform and additional distribution channels, including Alpaca; Passage by CoinList; custodians Anchorage Digital Bank, N.A., BitGo Bank & Trust, National Association and Fireblocks; Jito's trading interface JTX; and onchain wallet providers Solflare and Squads.

"Tokenized stocks will succeed only if public companies see the value in them, and we intend to build this market together with issuers," said Christopher Montagano, president of Formation Securities. "Formation Securities is designed to give issuers and investors a new, transparent market, with trading beyond traditional market hours and faster settlement onchain, while preserving the key rights shareholders enjoy in the traditional financial space."

Formation Securities is a venue designed to help issuers, tokenizers and traders realize the benefits of onchain trading on Solana. Issuers gain an efficient, global market for their securities that is open 24/7, while their transfer agent continues to keep the official record of shareholders. Every trade is recorded instantly on a public, permissionless distributed ledger, giving issuers a real-time view of trading in their shares. Companies keep their direct relationship with their shareholders, and holders of tokenized stock keep the same voting and dividend rights as all other shareholders.

Verified investors will hold tokenized shares in their digital wallets and be able to trade them 24/7 against stablecoins and other eligible assets. Each trade will settle atomically onchain, a feature designed to reduce settlement risk and provide immediate access to capital. Holders are also expected to be able to use their shares across approved onchain applications. Access to the venue will be limited to verified participants. The venue will operate under the conditions of the SEC's Innovation Exemption, including limits on listed securities and trading volume, along with mandated public disclosures and customer diligence requirements.

"Tokenized securities venues should be able to focus on execution and liquidity," said Carlos Domingo, CEO of Securitize. "Our Convertible Entitlement Tokens give them assets worth trading. Each one is backed by a real share held by our broker-dealer, carries the same rights as that share, and is held only by verified investors. That's the standard tokenized equities should meet, and we're glad to bring it to Formation Securities' launch on Solana, where Securitize Stocks is native."

"This is the moment we've been building toward since we started Superstate," said Robert Leshner, co-founder and CEO of Superstate. "Thanks to the SEC's Innovation Exemption, the companies we work with can have their shares trade onchain, around the clock, on Formation Securities. It's a huge step for public markets, and we couldn't be more excited to be part of it."

Built on Project Open
Formation Securities builds on Project Open, a proposal submitted in April 2025 by a coalition including Orca, Superstate and Solana Policy Institute to the SEC's Crypto Task Force. Project Open outlined an approach for issuing and trading shares on public, permissionless blockchains. The Project Open coalition then worked with SEC staff on how that trading could operate, ahead of the SEC's Innovation Exemption released in September 2026.

Why Solana
Formation Securities chose Solana for its reliability, speed, low cost and established track record with the trading of tokenized assets. Solana is home to more than $5 billion worth of tokenized real-world assets.^[1] Transactions on Solana settle in seconds and cost a fraction of a cent, which helps make frequent and small trades more practical. Solana's token infrastructure supports permissioning and transfer restrictions that govern which wallets may hold or transfer tokenized securities.

Formation Securities will launch with the following service providers: Predicate, Sec3, Solidus Labs and TRM Labs.

About Formation Securities LLC
Formation Securities LLC is a business that intends to operate a TSV on Solana under the SEC's Innovation Exemption, using trading technology licensed from Orca. The company is led by President Christopher Montagano. Learn more at https://formationsecurities.com/.

About Orca
Orca builds a full stack of financial products on public blockchains (including trading, credit and earn vaults), designed to unlock the full potential of tokenization. Orca launched its AMM technology on Solana in early 2021. As of October 31, 2026, users have traded more than $550 billion in digital assets on its AMM software, which has been formally verified by Certora and has undergone 11 audits by four other independent security firms. Learn more at https://orca.so/.

Forward-Looking Statements
This release contains forward-looking statements, including regarding planned products. Actual results may differ materially. Planned products are subject to applicable legal and regulatory requirements and may not be available in all jurisdictions. Nothing in this release is an offer to sell or a solicitation of an offer to buy any security or other financial product, or investment, legal or tax advice.

Contacts
Media:
press@formationsecurities.com 

Partnerships:
partnerships@formationsecurities.com 

X: @formation_so
LinkedIn: https://www.linkedin.com/company/formation-securities/ 
Website: https://formationsecurities.com/.

¹ https://app.rwa.xyz/networks/solana 

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SOURCE Formation Securities LLC

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When will Formation Securities launch tokenized stock trading, and which shares are expected?

Trading is expected to begin in early 2027, with tokenized shares of Exodus Movement (EXOD), Forward Industries (FWDI) and Galaxy Digital (GLXY) anticipated to be available at launch.

Will shares traded on Formation Securities retain voting and dividend rights?

Eligible tokenized stocks must provide the same rights and privileges as traditional shares, including voting and dividend rights. The issuer's transfer agent will continue to maintain the official shareholder record.

How does Formation Securities plan to handle tokenized stock trading and settlement?

Verified investors are expected to hold tokenized shares in digital wallets and trade them 24/7 against stablecoins and other eligible assets. Each trade will settle atomically onchain, meaning the exchange completes together on the blockchain. Formation Securities describes this design as intended to reduce settlement risk and provide immediate access to capital.