Formation Securities to List Galaxy (GLXY) Tokenized Stock on Solana (SOL) in Early 2027

Formation's Monday Notice to the SEC

Formation Securities, a company specializing in tokenized assets, filed its notice with the U.S. Securities and Exchange Commission (SEC) on Monday, November 9, 2026, stating its intent to operate a platform for buying and selling tokenized stocks on the Solana network. The design pairs the financial firm with Orca, a decentralized exchange on the chain whose licensed trading technology will power the venue and which sits among the top Solana projects, and the announcement followed a deliberate order of operations: Formation secured consent from the issuers first and went public with the platform second. Trading is slated to begin in early 2027, and the initial lineup covers the shares of three publicly traded companies: Galaxy Digital (GLXY), the crypto-focused financial services group; Exodus Movement (EXOD), the wallet developer; and Forward Industries (FWDI). The trio was drawn from companies that have already agreed to participate. Conventional exchanges keep fixed sessions, but the venue is built for continuous spot trading in tokenized shares against eligible stablecoins, available at any hour of the day. Investors will be able to hold the tokenized shares in digital wallets where they control the private key. Settlement is atomic, meaning the transfer of the share and the payment clear within one on-chain transaction, so no interval opens between trade and delivery. Distribution and custody are split across regulated providers: Superstate and Securitize will deliver the tokenized shares to investors, access is restricted to participants who pass identity verification, and Alpaca, Anchorage Digital Bank and BitGo Bank are expected to take part in distribution and custody processes. Formation president Christopher Montagano framed the commercial test plainly: tokenized equities can only succeed if public companies see economic value in the model. His stated aim is a trading environment that extends beyond traditional market hours while the shareholder rights attached to the underlying stock remain protected.

Inside the Innovation Exemption

The legal basis is the SEC's Innovation Exemption, announced September 17, 2026. The exemption runs for five years on a temporary, conditional basis and lets qualifying tokenized NMS stocks, the United States national-market-system shares, trade on-chain through permissioned automated market makers, contracts that price and match trades from pooled liquidity, without the operator registering as a national securities exchange. Synthetics are excluded outright: a token must carry the same voting rights and dividend entitlements as the underlying share, and the framework caps both the number of securities that can trade and transaction volume. Companies whose shares are tokenized keep the right to object under defined conditions, and the audience is limited to verified participants rather than open order books. The SEC's information page on the exemption is explicit that filing a notice of activity does not constitute approval from the regulator, so Formation's announcement establishes neither that the venue is live nor that every regulatory condition has been satisfied. Formation is the fourth firm to move under the exemption, after OKXICE, the venture between Intercontinental Exchange, parent of the New York Stock Exchange, and OKX, along with Canton-based TSV LLC and Perpetuals.com; it is the first of the group to anchor its design on Solana (SOL) infrastructure. The chain choice follows measured performance: tokenized-equity market data places Solana third in tokenized stock market value at roughly $570 million, behind Ethereum and BNB Chain. On activity the network leads outright, with tokenized stock trading volume above $7 billion over the past week and more than $5 billion in real-world assets held on the chain. Retail participation has scaled in parallel: Coinbase Wallet's Solana trading volume grew twelvefold in three months.

From Synthetics to Backed Shares

The immediate significance sits in the rights structure. Most tokenized stock activity on Solana today still runs through synthetics that carry no actual equity, so a venue built on full voting and dividend entitlements moves the chain from price tracking toward the fully backed instruments associated with DeFi 2.0. The constraints ahead are procedural and commercial rather than technical: a notice is not an approval, the exemption carries caps and an issuer objection right, and Montagano's own test, that issuers must see economic value, still has to be met before the 2027 launch. Practical risks remain too, from off-hours price gaps to slippage in thinner liquidity. On the underlying equity side, Galaxy Digital (GLXY) is the ticker to watch for early demand once the venue nears launch.