Formation Securities notified the SEC of launching stock trading directly on the blockchain. The venue will operate on the Solana network, with the start announced for early 2027. First on the list are securities from Exodus Movement, Forward Industries and Galaxy Digital.
What a tokenized stock is. It is a record on the blockchain tied to a real security. The SEC is the US securities market regulator, and it was the one that granted permission for such an experiment.
Why this matters to a trader. Trades run around the clock, and settlement happens instantly on the network. Stocks begin trading by the rules of the crypto market.
What exactly did the SEC approve?
The application was filed on November 9. The venue will operate under the so-called innovation exemption.
- Innovation exemption - a regime the SEC introduced for the experiment with blockchain-based stock trading.
- Secondary transactions in tokenized stocks are permitted through approved automated liquidity pools. The trade executes against a pool of funds, not against another person's order.
- Only approved venues may use such a mechanism.
How does a token differ from a stock?
According to Formation, there is no difference in rights. Such tokens grant the same voting and dividend rights as ordinary shares.
- Round-the-clock trading against stablecoins and other eligible assets. A stablecoin is a coin whose rate is pegged to the dollar.
- Settlement instantly on the network, without separate clearing.
- Access only for verified investors.
- Distribution of tokens - through the Formation platform itself, and the Superstate and Alpaca services.
- Custody - with Anchorage and BitGo Bank.
Why was Solana chosen?
Formation appeared in October 2026 from the merger of two projects on Solana - the Orca exchange and Loopscale. The network was chosen for three reasons.
- Speed. Transactions on the network are fast.
- Cost. The transaction price is low.
- $5 billion. That is how much tokenized real-world assets the network already services.
Christopher Montagano, president of Formation Securities: tokenized stocks will only take off if the public companies themselves see value in them.
What does this mean for a trader?
There is no rush. Trading starts no earlier than early 2027, and only verified investors will be able to get in.
- You can study the mechanics of prop trading in the academy.
- It is easier to find conditions suited to your market through the challenge calculator.
What happens next?
Formation is not alone here. OKXICE - a joint venture between OKX and Intercontinental Exchange, the owner of the NYSE - has announced the listing of tokenized stocks under the same regime.
- The OKXICE venue is not yet operational.
- 67 companies have already spoken out against the tokenization of their shares for trading on it.
Stocks will become just as round-the-clock a market
Stock trading is moving to where you already are: blockchain, stablecoins, on-network settlement, a market that never closes. There will be more instruments, but the size of your deposit won't change because of it. A correct idea on five thousand gives fifty dollars in 2027 too. In prop trading, the trading nominal is provided by the company: you pass a paid evaluation, trade within its loss limits and take a share of the profit under the contract. While the market is being restructured, it makes sense to study this mechanic as well.