Formation Securities plans to tokenize shares of Galaxy Digital, Exodus Movement, and Forward Industries and make them available for trading on Solana.
Formation Securities has notified the U.S. Securities and Exchange Commission (SEC) of its plan to establish a platform for trading tokenized securities on Solana. The company expects trading to begin in early 2027.
The initial listing will include Galaxy Digital (GLXY), Exodus Movement (EXOD), and Forward Industries (FWDI). Formation aims to operate under the SEC’s five-year framework for innovative products. The framework limits participation to verified investors and places restrictions on trading volume and the number of securities that can be offered.
A different model for stock tokens on Solana
According to RWA.xyz data, Solana ranks third in tokenized stock value, behind Ethereum and BNB Chain. The network has around $570 million worth of stock tokens, while more than $7 billion in tokenized stocks on Solana was traded last week.
A significant portion of this trading consists of synthetic tokens that track stock prices but do not give investors ownership or shareholder rights in the underlying stocks. Formation’s planned tokens, by contrast, will carry the same voting and dividend rights as traditional shares, in accordance with SEC rules. The goal is for investors to hold shares in their digital wallets, trade them around the clock using stablecoins, and have transactions settle instantly on-chain.
Formation is setting out with the backing of its first three issuers at a time when some companies have objected to their shares being traded after third parties tokenize them. Company president Christopher Montagano said they plan to hold direct discussions over the next two months to bring more publicly traded companies onto the platform.
Multiple tokenization companies on one platform
Formation aims to bring different tokenization providers together on a single trading platform. Superstate and Securitize are expected to offer tokenized shares on the platform, while Anchorage Digital, BitGo, and Fireblocks will provide custody services. The company plans to license trading technology from Solana-based decentralized exchange Orca.
Alex Thorn, head of research at Galaxy, said the SEC’s innovation framework offers a regulated testing ground for on-chain stocks and that they expect the sector to become a meaningful segment of U.S. capital markets.
Not investment advice.