Formation Securities Plans 24/7 Solana Tokenized Stock Trading With Galaxy, Exodus and Forward Industries

Solana Tokenized Stock Trading Takes a Step Toward Wall Street

Solana tokenized stock trading could become a new option for investors in early 2027 after Formation Securities announced plans to establish a blockchain-based marketplace for publicly listed U.S. equities.

On November 9, 2026, Formation Securities LLC notified the U.S. Securities and Exchange Commission of its intention to operate a tokenized securities venue using Solana's public blockchain.

The company plans to combine conventional shareholder rights with cryptocurrency-style trading infrastructure.

Eligible investors would be able to hold tokenized shares in approved digital wallets, trade outside normal stock exchange hours, and settle transactions directly onchain.

Unlike many existing tokenized equity products that primarily offer synthetic price exposure, Formation intends to support securities linked to actual shares and their associated shareholder rights.

The planned marketplace is expected to begin trading in early 2027.

However, the venue is not operational, and the company must satisfy the applicable conditions of the SEC's Innovation Exemption.

The announcement comes as major financial institutions, cryptocurrency exchanges, and blockchain developers compete to modernize securities trading.

For Solana, the proposal represents another potential use case beyond cryptocurrency trading and decentralized finance.

What Is Formation Securities?

Formation Securities is a financial technology company developing infrastructure for tokenized securities.

The business licenses trading technology from Orca, a decentralized exchange protocol originally built on Solana.

Formation emerged following the combination of Orca and Loopscale-related operations in October 2026.

Its proposed marketplace is designed to allow eligible tokenized stocks to trade through automated liquidity pools.

The platform aims to connect public companies, tokenization providers, institutional custodians, liquidity providers, and verified investors.

Why Formation Chose Solana

According to the company's official announcement, Solana was selected for several reasons.

These include relatively low transaction costs, fast settlement, established blockchain infrastructure, and existing tokenized asset activity.

Formation says Solana already supports more than $5 billion in tokenized real-world assets.

That figure covers multiple asset categories and should not be interpreted as the value of tokenized stocks alone.

Solana also provides token infrastructure capable of enforcing transfer restrictions and other controls required for regulated financial instruments.

This is important because tokenized shares cannot necessarily move between wallets as freely as ordinary cryptocurrencies.

Securities laws, investor eligibility rules, and issuer requirements still apply.

Which Stocks Will Trade on Formation Securities?

Formation has identified three companies whose tokenized shares are expected to be available when the platform launches.

These companies already have substantial connections to the cryptocurrency industry.

Their participation could make them more comfortable with blockchain-based securities than businesses unfamiliar with digital assets.

However, the final launch lineup remains subject to applicable requirements and the venue's operational readiness.

Exodus Movement

Exodus develops cryptocurrency wallet technology and has previously explored tokenized equity structures.

Its inclusion could help demonstrate how a company with a crypto-native customer base approaches blockchain-based share ownership.

Forward Industries

Forward Industries has developed a strategy involving Solana and digital asset treasury operations.

Its anticipated participation could connect the company's public equity with the blockchain ecosystem in which it is already active.

Galaxy Digital

Galaxy Digital operates across cryptocurrency investment, trading, asset management, and financial infrastructure.

The company's involvement could provide an institutional perspective on tokenized securities.

Formation has also indicated that it intends to approach additional public companies and ETF issuers.

No complete future listing schedule has been confirmed.

How Will 24/7 Stock Trading Work on Solana?

The proposed marketplace differs from a conventional stock exchange in several important ways.

Traditional U.S. equities generally trade during established market sessions, with some additional premarket and after-hours activity.

Formation aims to allow eligible tokenized shares to trade continuously.

Instead of depending on a traditional exchange order book, the venue plans to use permissioned automated market maker pools.

Automated Market Makers Explained

An automated market maker, or AMM, is a trading system that uses smart contracts and liquidity pools to facilitate transactions.

Rather than matching every buyer with an individual seller, an AMM calculates prices based on the assets available in its pool.

This model is common in decentralized cryptocurrency trading.

Formation intends to adapt the technology for regulated securities.

However, unlike an unrestricted decentralized exchange, its trading pools will be accessible only to verified and eligible participants.

Example of a Tokenized Stock Transaction

Consider a hypothetical investor who wants to purchase tokenized Galaxy Digital shares on a Saturday.

If the proposed venue launches and the investor satisfies its eligibility requirements, the investor could access an approved trading interface.

The investor would select an eligible trading pair, potentially using a supported stablecoin.

The AMM would calculate the available execution price.

If the investor accepts the transaction, the trade would execute through Solana-based smart contracts.

The corresponding tokenized shares and payment assets would be exchanged within the same blockchain transaction.

This process is known as atomic settlement.

However, actual prices would depend on available liquidity and the pool's trading conditions.

The example illustrates the planned system rather than a service already available today.

What Is Atomic Settlement and Why Does It Matter?

Traditional U.S. stock trades generally follow a T+1 settlement cycle.

That means settlement usually occurs one business day after the trade date.

Blockchain-based atomic settlement is designed to complete the exchange of assets and payment within a single transaction.

Either the linked transaction components execute together, or the transaction fails.

This can reduce certain settlement risks.

It may also reduce the time during which counterparties have outstanding obligations.

Traditional Stocks vs. Formation's Proposed Model

Faster settlement does not eliminate every financial risk.

Investors still face market volatility, custody risks, smart-contract vulnerabilities, and possible liquidity shortages.

Will Tokenized Stocks Have Real Shareholder Rights?

Formation says eligible tokenized securities will preserve voting, dividend, and other rights associated with the underlying shares.

This is a central part of the proposed structure.

Some blockchain-based stock products provide price exposure without giving investors the same legal rights as shareholders.

Formation intends to support a different model.

The tokenized securities would be connected to actual shares, with transfer agents maintaining official shareholder records.

Role of Superstate and Securitize

Superstate and Securitize are expected to make tokenized securities available through the platform.

Both companies specialize in bringing traditional financial assets onto blockchain infrastructure.

Securitize has described its Convertible Entitlement Tokens as instruments backed by real shares held through its broker-dealer arrangements.

The tokens are intended to preserve the rights associated with those underlying shares.

However, the exact legal structure of each listed security remains important.

Investors should review the relevant offering documents and disclosures before assuming that every tokenized equity product has identical ownership arrangements.

Formation's SEC Innovation Exemption Explained

The regulatory framework is one of the most important parts of the announcement.

On September 17, 2026, the SEC issued temporary conditional exemptive relief allowing certain tokenized U.S. equities to trade through qualifying blockchain-based venues.

The framework is commonly described as the Innovation Exemption.

It allows eligible trading systems to experiment with permissioned automated market makers under specified conditions.

The exemption includes restrictions involving securities eligibility, trading activity, investor verification, disclosures, and other compliance requirements.

Does Formation Have SEC Approval?

Formation has notified the SEC of its intention to operate under the exemption.

That is not equivalent to the SEC endorsing the company or approving every aspect of its business.

Formation's own website states that it is not registered with the SEC for the activities conducted under the tokenized securities venue exemption.

The company also explains that the SEC has not passed upon the merits or accuracy of its public disclosures.

The venue must comply with the exemption's conditions.

The distinction matters because describing the proposal as a fully SEC-approved stock exchange would be misleading.

Formation is pursuing a permitted experimental regulatory structure, not announcing that it has become a conventional national securities exchange.

Why Formation Is Working Directly With Stock Issuers

One of the most interesting elements of Formation's strategy is its emphasis on cooperation with public companies.

Formation President Christopher Montagano has explained that the company wants issuers to participate in developing the market.

This differs from approaches that have attracted resistance from public companies.

How Formation Differs From OKXICE

OKXICE, a joint venture involving cryptocurrency exchange OKX and NYSE parent Intercontinental Exchange, has also proposed tokenized stock trading.

However, dozens of companies have objected to the inclusion of their shares.

Bitnxt previously covered the controversy in its report on Coinbase CEO Brian Armstrong's support for stock tokenization amid opposition to OKXICE.

As of early November, 67 companies had filed objections to the OKXICE proposal.

Formation is attempting to reduce this friction by securing issuer cooperation before launching its listings.

That approach may improve relationships with public companies and their legal teams.

However, cooperation does not automatically eliminate concerns involving investor protection, liquidity, and securities regulation.

Why Issuer Support Matters

Public companies have responsibilities involving shareholder records, dividends, voting, and corporate disclosures.

Tokenization can introduce additional complexity into those processes.

If companies are involved from the beginning, they may be better positioned to ensure that the tokenized structure supports their existing obligations.

This could make issuer participation an important competitive advantage.

At the same time, requiring active cooperation may limit how quickly the platform can expand its stock listings.

Formation Securities Partners With Major Crypto Infrastructure Providers

The planned marketplace involves several established companies.

Its announced ecosystem includes:

• Superstate and Securitize: Tokenization and securities infrastructure.

• Anchorage Digital, BitGo, and Fireblocks: Custody and wallet infrastructure.

• Alpaca and Passage by CoinList: Distribution and investor access.

• Solflare and Squads: Solana wallet connectivity.

• Jito's JTX: Trading interface infrastructure.

• Predicate, Sec3, Solidus Labs, and TRM Labs: Compliance, security, and risk-management services.

These relationships suggest that Formation is building a broader financial market infrastructure rather than a standalone decentralized trading application.

However, the announcement does not establish that every partner's integration is fully operational.

The final scope of each service will depend on the platform's launch arrangements.

Could Solana Become Important Financial Market Infrastructure?

The Formation announcement follows growing interest in using Solana for financial applications.

The blockchain already supports stablecoins, decentralized exchanges, lending protocols, and tokenized assets.

Formation's proposal would introduce another category: trading tokenized versions of publicly listed U.S. equities.

This could increase Solana's relevance to traditional finance if the platform attracts meaningful participation.

However, institutional adoption cannot be measured by announcements alone.

The important indicators will be actual trading volume, liquidity, settlement reliability, and the number of participating issuers.

Fidelity Has Also Highlighted Solana's Infrastructure Potential

The announcement arrives as major asset managers examine Solana's role in financial markets.

Fidelity has recently described Solana as an emerging component of financial market infrastructure, reflecting the network's growing use in trading and settlement-related applications.

Formation's plans provide a concrete example of that potential.

However, the marketplace has not launched.

Its future performance will provide more meaningful evidence than the announcement itself.

How Formation Compares With NYSE's Avalanche Tokenization Plans

Formation is not the only company attempting to modernize stock trading through blockchain technology.

The New York Stock Exchange recently selected Avalanche technology for the settlement infrastructure supporting an upcoming NYSE-affiliated tokenized securities venue.

The two projects share several objectives.

Both aim to support faster settlement and trading beyond conventional market hours.

However, their technical structures differ.

Formation intends to use Solana's public blockchain with permissioned trading pools.

The NYSE-affiliated project plans to use a dedicated Avalanche-based blockchain for settlement while retaining conventional exchange order-matching technology.

Different Paths Toward the Same Goal

Formation's model emphasizes blockchain-native trading and settlement through automated liquidity pools.

The NYSE model combines established exchange infrastructure with blockchain-based settlement.

Neither approach has yet demonstrated sustained large-scale operation for the planned tokenized stock services.

The comparison illustrates how financial markets are exploring different ways to integrate blockchain technology.

The long-term outcome will depend on liquidity, regulatory compliance, transaction costs, and institutional acceptance.

Morgan Stanley's Tokenization Progress Shows the Market Is Still Developing

Another relevant development involves Morgan Stanley.

Bitnxt previously reported that Morgan Stanley began tokenizing U.S. stocks and Treasuries through DTCC infrastructure.

However, the bank separately delayed tokenized equity trading on its own alternative trading system until the first quarter of 2027.

That distinction highlights an important challenge.

Creating blockchain representations of securities is not the same as operating a liquid secondary market where investors actively trade them.

Formation will face a similar test.

The company must establish not only the technical infrastructure but also enough trading activity to make the venue useful.

What Are the Risks of 24/7 Tokenized Stock Trading?

Continuous market access sounds attractive, particularly for international investors.

However, it creates risks that conventional trading schedules can sometimes limit.

Liquidity Outside Market Hours

Traditional stock markets concentrate substantial trading activity during regular sessions.

A blockchain venue operating overnight or on weekends may have fewer active participants.

Lower liquidity can lead to wider spreads and greater price volatility.

Price Differences

Automated market makers calculate prices using pool liquidity.

A tokenized stock's trading price may differ from the corresponding share price on a conventional exchange.

These differences could become more pronounced when the underlying stock market is closed.

Smart-Contract Risk

Formation plans to use Orca-derived automated market maker technology.

Although the company highlights prior security audits and formal verification work, no software system is guaranteed to be free of vulnerabilities.

Smart-contract failures could create financial losses or operational disruptions.

Custody and Wallet Risk

Self-custody allows eligible investors to control tokenized securities through approved wallets.

However, investors remain responsible for protecting wallet credentials and complying with applicable transfer restrictions.

A compromised wallet could expose assets to unauthorized transactions.

Regulatory and Operational Risk

The SEC's exemption is conditional and temporary.

Formation must comply with the applicable rules.

Changes in regulation, operational requirements, or market conditions could affect the venue's development.

Does the Announcement Guarantee Higher SOL Demand?

No.

The proposed venue could increase activity on Solana if it attracts meaningful trading volume.

Transactions on Solana generally require network fees paid in SOL.

However, the announcement does not provide a forecast for transaction volume or the amount of SOL that the platform will consume.

Solana's low transaction costs also mean that substantial activity does not necessarily translate into proportionally large fee revenue.

The relationship between network adoption and SOL's market price is influenced by many factors.

These include overall cryptocurrency market conditions, token supply, staking, liquidity, and investor sentiment.

Therefore, Formation's announcement should be viewed as a potential infrastructure development rather than a guaranteed bullish catalyst for SOL.

Bitnxt Take: Formation's Biggest Advantage May Be Issuer Cooperation

At Bitnxt, we believe Formation Securities' announcement is important for reasons that extend beyond Solana's transaction speed.

The most interesting part of the strategy is the company's decision to work directly with public companies before introducing their tokenized shares.

The tokenization industry has spent years discussing faster settlement, global access, and programmable financial assets.

However, technical capability alone does not create a successful securities market.

Public companies need confidence that their shareholder records and corporate rights will remain protected.

Investors need reliable liquidity and transparent pricing.

Regulators need evidence that platforms can meet compliance requirements.

Formation's issuer-focused approach attempts to address several of these concerns.

We believe this could become an important distinction as tokenized stock venues compete for listings.

Why the OKXICE Comparison Matters

The objections faced by OKXICE demonstrate that public companies may resist having their shares traded through unfamiliar tokenized structures.

Formation is pursuing a different route by securing cooperation with its anticipated initial issuers.

That may reduce legal and commercial friction.

However, the three initial companies already have strong cryptocurrency connections.

The more difficult test will be attracting businesses outside the digital asset industry.

A successful tokenized stock market must eventually appeal to companies whose shareholders are not primarily cryptocurrency users.

Our Assessment

Bitnxt believes Formation's long-term opportunity depends less on being the first Solana-based tokenized stock venue and more on proving that issuer-supported blockchain trading can deliver reliable liquidity, clear ownership rights, and efficient settlement.

We also believe the industry should avoid treating 24/7 trading as an automatic improvement.

Continuous access is useful only when investors can execute transactions at reasonable prices.

Thin liquidity and fragmented markets could undermine the benefits of faster settlement.

Formation's success will depend on whether it can combine blockchain technology with the market quality investors expect from traditional securities platforms.

Could Tokenized Stocks Change Global Investing?

Tokenized securities could eventually make certain financial products easier to distribute through compatible digital infrastructure.

Blockchain settlement may reduce delays associated with transferring ownership and payment.

Digital wallets could also support new ways of accessing eligible investment products.

However, tokenization does not remove geographic restrictions, securities laws, or investor eligibility requirements.

Formation's planned platform is designed for verified participants.

It should not be described as an unrestricted global stock exchange available anonymously to everyone.

The long-term opportunity lies in making regulated securities infrastructure more efficient while maintaining investor protections.

What Happens Next for Formation Securities?

Several milestones will determine whether the proposed marketplace becomes operational.

The first is compliance with the SEC's Innovation Exemption.

The company must satisfy the conditions applicable to its planned activities.

The second is completing the platform's technical infrastructure.

Trading systems, custody integrations, investor verification, and risk controls must work reliably.

The third is confirming the initial stock listings.

Exodus, Forward Industries, and Galaxy Digital are expected to participate, but final availability will depend on launch readiness and applicable requirements.

The fourth is attracting liquidity providers.

Without sufficient liquidity, continuous trading could become expensive or unreliable.

The fifth is expanding issuer participation.

Formation intends to approach additional companies and ETF issuers.

Finally, the company must demonstrate that its blockchain-based trading model can deliver practical benefits compared with conventional securities infrastructure.

Final Thoughts

Formation Securities' plan to introduce 24/7 tokenized stock trading on Solana represents another significant development in the convergence of cryptocurrency technology and traditional financial markets.

The proposed venue would allow verified investors to trade eligible tokenized U.S. equities through permissioned automated market maker pools.

Exodus Movement, Forward Industries, and Galaxy Digital are expected among the initial offerings.

The platform aims to preserve shareholder voting and dividend rights while enabling atomic settlement directly on Solana.

However, trading has not started, and the planned early 2027 launch remains subject to regulatory conditions and operational readiness.

Bitnxt believes Formation's issuer-focused approach could help address one of the biggest barriers to tokenized securities adoption: the need to combine blockchain efficiency with recognized shareholder rights and corporate participation.

The next challenge is turning that strategy into a functioning market with sufficient liquidity, reliable technology, and sustained investor demand.