Formation Plans 24/7 Tokenized Stock Trading on Solana

Formation names three stocks for launch

The three companies appear in Formation’s November 9 public notice. The company said it expects Superstate and Securitize to make stock tokens available. The notice says Formation will publish the final list of trading pairs before trading begins. Potential assets on the other side of a trade include stablecoins and tokenized money market funds.

Some of the shares are already available in tokenized form. Galaxy’s shareholder page says eligible holders can move its tokenized Class A stock between approved wallets. Formation’s plan would add a venue where approved investors could buy and sell through shared pools of assets.

Under the SEC’s September Innovation Exemption, eligible tokens must convey rights equivalent to the underlying share class, including dividends and voting. Formation says it will review how each provider distributes dividends and proxy materials and passes along votes. It will also check the documentation backing each token with the corresponding share.

Solana stock trades require approved wallets

A customer would connect a supported wallet and clear identity, sanctions and wallet checks before Formation adds the address to its list of approved wallets. The tokenization provider must also clear the wallet for its stock token. Formation expects investors to connect through its own platform and other services, including Alpaca and the Solflare and Squads wallets.

Investors would sign each trade from a wallet controlled by them or their custodian. Formation plans to price trades through software licensed from Orca, which merged with Loopscale in October. The software adjusts quotes as trades change the mix of assets in a pool. If a swap meets the price limit the user accepts, both assets change hands in one Solana transaction.

The notice identifies separate charges for the venue, the pool and the Solana transaction. A third-party interface may charge an additional fee. Formation says its interface will show the expected proceeds and fees before the investor signs.

The design follows Project Open, an April 2025 submission from Orca, Superstate and the Solana Policy Institute. The group asked the SEC for relief that would let equity securities trade on public blockchains. Formation’s public notice describes how one operator intends to use the conditional relief the agency issued in September.

SEC rules cap trading and let issuers object

The SEC requires qualifying venues to post a public notice at least 30 calendar days before operating. Formation’s notice says it plans to rely on the exemption and that the SEC has yet to pass on the accuracy or merits of its disclosures.

For tokens created by an unaffiliated third party, the order requires the venue to notify the underlying stock issuer and wait at least 30 calendar days from receipt. A timely objection blocks the venue from offering that token. That provision has already shaped a competing venue. Apple and Meta objected to third-party tokens on OKXICE. Formation said it had received no issuer objections as of November 9.

The order also caps tokenized trading volume by reference to the underlying stock’s average daily volume in the previous month. The thresholds are 0.25% for Tier 1 stocks and 2.5% for Tier 2. Formation says it will suspend a token’s trading when the underlying shares are halted on their primary exchange, even though the venue is designed to run 24 hours a day.

Quotes in the pools can also differ from the prices on the primary exchange. The commission cited the possibility of prices diverging as one reason for the volume caps.

The Bitcoin-focused Crypto Fear & Greed Index rose to 29 on November 9 from 28 the previous day, remaining in the Fear range.

Formation has yet to name a launch date or identify which assets will pair with the three planned stock tokens. Its notice says those pairs and the addresses of the trading software on Solana will be disclosed before live trading.