Summary
- Formation Securities said it is moving ahead with a Solana (SOL)-based tokenized stock trading platform.
- Formation said it will use the SEC's Innovation Exemption to support secondary trading in tokenized shares for approved investors.
- The company said holders of tokenized shares will be able to trade 24 hours a day using stablecoins while retaining voting and dividend rights.
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Formation Securities plans to operate a Solana-based platform for trading tokenized securities.
Formation has notified the U.S. Securities and Exchange Commission of plans to run a Solana-based tokenized stock trading platform, crypto-focused media outlet The Block reported on November 9.
The company plans to use the SEC's Innovation Exemption to support secondary trading of tokenized shares that meet certain requirements. Under the model, approved investors would buy and sell tokenized stocks through permissioned trading pools.
Formation is targeting an early 2027 launch. Initially, the platform will offer tokenized versions of shares in Exodus Movement, Forward Industries and Galaxy Digital.
The tokenized shares will be available to investors who complete identity verification. They will be accessible through distribution channels including Superstate, Formation Securities' own platform and Alpaca. Custodians including Anchorage and BitGo Bank will also participate.
Formation cited Solana's fast processing speeds, low costs and network stability as reasons for choosing the blockchain. Holders of tokenized shares will retain the same voting and dividend rights as traditional shareholders. The company also plans to enable 24-hour trading using stablecoins.
Formation launched last month through the merger of Solana-based decentralized exchange Orca and Loopscale. The company is focused on tokenization and on-chain finance.
Minseung Kang
