Formation Securities Seeks SEC Exemption for Solana-Based Stock Trading

Formation Securities is moving to establish a blockchain-based securities trading venue on the Solana network, operating under an exemption from the Securities and Exchange Commission, according to reports from Cointelegraph. The platform would allow around-the-clock trading of tokenized shares, a structure that differs fundamentally from traditional exchanges bound by standard market hours.

The proposed venue is initially set to offer tokenized shares from three companies: Galaxy Digital, Exodus, and Forward Industries. By anchoring the platform to Solana's high-throughput blockchain infrastructure, Formation Securities is positioning itself within a growing movement to bring conventional equity markets onto distributed ledger technology.

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A launch is planned for early 2027, suggesting the firm is allowing considerable runway to navigate the regulatory process and build out its technical infrastructure. The SEC exemption pathway is a critical element of the strategy, as it would permit Formation Securities to operate outside certain standard broker-dealer and exchange registration requirements that govern traditional trading platforms.

The initiative reflects broader momentum in the tokenized securities space, where firms are increasingly exploring how blockchain rails can extend market access and liquidity. Regulators and market participants have watched such efforts closely, particularly as the SEC under recent leadership has signaled a more open posture toward digital asset innovation. Whether Formation Securities can meet the threshold for exemption approval will likely determine the project's viability ahead of its target launch window.

Continue reading at Cointelegraph.