Solana (SOL) gets tokenized stock venue under SEC framework, trading Galaxy (GLXY), Forward (FWDI) - CoinDesk
Formation Securities plans to launch the first Solana-based tokenized stock marketplace under the SEC's innovation exemption, with Galaxy Digital, Exodus Movement and Forward Industries already committed to listing their tokenized shares.
Formation Securities has announced plans to operate the first Solana-based tokenized stock marketplace under the U.S. Securities and Exchange Commission's (SEC) innovation exemption. The company told CoinDesk it notified the agency of its plans to create a tokenized securities venue (TSV), with trading expected to begin in early 2027.
The initial lineup for tokenized share trading includes Galaxy Digital (GLXY), Exodus Movement (EXOD) and Forward Industries (FWDI), all of which have already approved their shares to be tokenized for trading on this new platform.
Formation is the fourth firm announcing plans to create a marketplace under the SEC's framework, following OKXICE — the joint venture of NYSE parent Intercontinental Exchange and crypto exchange OKX —, Canton-based TSV LLC and Perpetuals.com.
Different approach from previous venues
Unlike previous tokenized stock venues, Formation chose a different approach by securing support of its first three issuers before announcing the venue. Christopher Montagano, the firm's president, told CoinDesk in an interview that this approach avoids the objections faced by OKXICE, which encountered resistance from about 90% of the 62 companies it initially selected.
Onchain equities are still nascent, but the SEC's innovation exemption provides a thoughtful and regulated pathway to explore what we expect to become a meaningful segment of U.S. capital markets.
The venue's initial roster consists of companies already familiar with tokenization. Galaxy and Forward Industries tokenized shares are listed on Superstate's Opening Bell platform, while Exodus was among the first companies to issue its shares in a tokenized form through Securitize.
Full shareholder rights and 24/7 trading
Under the SEC's rules, investors would be able to hold the shares in their own digital wallets and trade them around the clock using stablecoins, with transactions settling instantly onchain. The tokens would carry the same shareholder rights as traditional stocks, including voting and dividends.
Formation plans to expand its roster through direct outreach to public companies over the next two months, pitching the venue as an additional distribution channel that could attract new investors beyond traditional stock exchanges.
Competitive marketplace approach
Formation also wants to bring competing tokenization providers onto the same trading platform. Superstate and Securitize are both expected to make tokenized shares available on the venue, while custody providers Anchorage Digital, BitGo and Fireblocks will help investors access the market.
The company plans to license trading technology from Orca, a Solana-based decentralized exchange protocol. Montagano previously served as chief legal officer of Orca.
Montagano said the company wants to build a venue "that can be competitive with Nasdaq from a spreads perspective, from an efficiency perspective," demonstrating that blockchain-based trading can compete with traditional exchanges on costs and efficiency.
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