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Formation plans the first Solana tokenized stock venue under the SEC's exemption, with Galaxy, Exodus and Forward signed on
Summary
Formation Securities has notified the SEC that it plans to run a tokenized securities venue on Solana under the agency's innovation exemption, with trading targeted for early 2027, The Block and CoinDesk reported.
The first lineup is tokenized shares of Galaxy Digital, Exodus Movement and Forward Industries, which carry the same voting and dividend rights as regular shares and trade around the clock against stablecoins with onchain settlement, both outlets said.
Unlike OKXICE, which has drawn objections from dozens of companies whose shares it picked, Formation secured its issuers' support before announcing, its president Christopher Montagano told CoinDesk.
CoinDesk said Formation is the fourth firm to announce a venue under the framework, after OKXICE, Canton-based TSV LLC and Perpetuals.com.
Key facts
- The Block: the exemption allows conditional secondary trading of eligible tokenized stocks through permissioned automated market maker pools on qualified venues; trading is targeted for early 2027.
- CoinDesk: the five-year framework restricts participation to verified investors, with limits on trading volume and the number of securities offered.
- CoinDesk: Solana ranks third behind Ethereum and BNB Chain in stock tokens, with roughly $570 million of a $3.8 billion market, per RWA.xyz.
- Outlets give different objection counts for OKXICE: The Block said 67 firms have objected, while CoinDesk's tally found about 90% of the 62 companies OKXICE first selected had objected as of Friday.
- The Block: Montagano said, “Tokenized stocks will succeed only if public companies see the value in them, and we intend to build this market together with issuers.”
- CoinDesk: Superstate and Securitize are expected to supply tokenized shares, with Anchorage Digital, BitGo and Fireblocks for custody and Alpaca, CoinList, Solflare, Squads and Jito's JTX among distribution partners.
- The Block: Formation was formed last month from the merger of Solana DEX Orca and Loopscale; CoinDesk said it will license trading technology from Orca, where Montagano was previously chief legal officer.
- Cointelegraph: the proposed venue would offer 24/7 trading of tokenized shares from Galaxy Digital, Exodus and Forward Industries, with a launch planned for early 2027.
- Decrypt: Formation plans to list tokenized shares of Exodus, Forward Industries and Galaxy Digital in early 2027 under the SEC's Innovation Exemption, with the same voting and dividend rights as the underlying stock.
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