Formation targets 2027 launch for Solana tokenized stock venue

The proposed platform would let verified, eligible investors trade around the clock using stablecoins and other permitted assets. Formation says tokenized shares would retain the rights of traditional stock, including voting and dividend rights. Transactions are expected to settle on Solana, with securities and payment transferred in the same blockchain transaction.

The company plans to work with tokenization providers Superstate and Securitize, and to distribute access through partners including Alpaca, Passage by CoinList, Anchorage Digital Bank, BitGo Bank & Trust, Fireblocks, Solflare and Squads. Formation President Christopher Montagano said the company intends to build the market with issuers, arguing that their participation will be essential to tokenized stocks’ success.

The SEC’s September 17 decision allows certain tokenized securities venues to operate under temporary exemptions. The framework permits eligible stocks to trade in permissioned automated market maker pools, subject to limits on trading volume and the number of securities. Venues must verify that tokenized shares carry equivalent rights, publish trading disclosures and give at least 30 days’ notice before opening. Filing a notice does not mean the SEC has approved a venue or confirmed its compliance.

Formation has not begun trading, and its launch depends on meeting the exemption’s requirements. Its notice names the three proposed initial securities and describes a review of tokenization structures. The company also says it will publish prices, volumes and timestamps, update data on the preceding 30 days of transactions within 10 minutes of each trade, and disclose pool contract addresses, daily share volumes and balances. Orca’s trading technology is licensed for the venue; the company says Orca’s automated market maker software processed more than $550 billion in digital asset trades through October 31. Formation named Predicate, Sec3, Solidus Labs and TRM Labs for compliance and transaction monitoring.