Formation Securities has notified the U.S. Securities and Exchange Commission of its intention to launch a tokenized stock trading venue in early 2027, operating under the agency's Innovation Exemption. The Solana-based firm has already secured approval from three public companies to tokenize their shares, and its issuer-first approach arrives as corporate objections mount against rival plans to move listed shares onto blockchain networks.

Formation Seeks Company Consent Before Tokenizing

Formation Securities is the tokenized securities arm of the merged Solana-based firms Orca and Loopscale. The company formally notified the SEC on Monday that it intends to operate under the Innovation Exemption.

Its initial issuers are wallet provider Exodus, Solana treasury company Forward Industries, and crypto investment firm Galaxy Digital. Formation President Chris Montagano said public companies must see value in tokenization for the market to succeed.

The company is seeking consent before tokenizing shares — a model that differs from OKXICE, a joint venture between crypto exchange OKX and Intercontinental Exchange. OKXICE gave companies 30 days to object to its plans. Dozens of companies have challenged the proposal, while a Wall Street Journal advertising campaign has urged firms to resist. Under Formation's approach, companies agree before tokenization proceeds; under OKXICE's, they must act within a fixed window to stop it.

Montagano Cites Corporate Concerns and Direct Outreach

Montagano previously served as an SEC attorney and helped take real estate company Phillips Edison public. He said legal departments may distrust proposals they do not understand, citing concerns about illicit activity and asset security alongside a series of crypto-related hacks and scandals.

He acknowledged that objections to OKXICE have dampened enthusiasm for tokenization. Even so, he said Formation plans to engage companies directly, and the venue is already discussing participation with other public companies and ETF issuers. Montagano expects the issuer lineup to expand over the coming months, ahead of the venue's targeted early-2027 launch.

Around-the-Clock Trading on Solana

Formation's venue will run on Orca's automated market maker technology on Solana. The platform plans to offer 24-hour trading, self-custody, and onchain settlement, while preserving voting, dividend, and other shareholder rights — meaning a tokenized position would carry the same core entitlements as the underlying share.

Its partners include Superstate, Securitize, Anchorage Digital, BitGo, and Fireblocks.

The announcement follows TSV LLC's launch last week. TSV became the first venue to execute tokenized stock trades under the SEC exemption, trading shares of Canton Strategic Holdings on the Canton Network. With TSV already executing trades under the exemption and Formation targeting early 2027, securing issuer sign-off is the step on which tokenized-stock launches now hinge.