Formation Securities Plans to Launch Solana-Based Tokenized Stock Trading Venue Under SEC Innovation Exemption

Odaily reports that Formation Securities plans to launch a tokenized stock trading venue on Solana under the SEC innovation exemption, expected to go live in early 2027. The platform plans to support tokenized stocks of Galaxy Digital, Exodus Movement, and Forward Industries, and will adopt automated market maker technology, allowing investors to hold securities in their own wallets and settle on-chain using stablecoins and other eligible assets. Traditional transfer agents will still maintain official shareholder records.

Under the SEC innovation exemption, trading venues must notify issuers in writing and wait at least 30 calendar days before trading stocks tokenized by unaffiliated third parties. As of early November, more than 50 companies had opposed the tokenization of their stocks on OKXICE's proposed trading venue. Nasdaq has warned that tokenized stock trading could have unforeseen effects on liquidity, price discovery, and long-term shareholder value.

As of Monday, the value of tokenized stocks on Solana was approximately $575 million, below Ethereum's $747 million and BNB Chain's $1.7 billion. (Cointelegraph)