Formation Securities plans Solana venue for tokenized shares

Unchained reported that Formation Securities has outlined a plan for a tokenized shares venue on Solana. The company posted a public notice on November 9 describing the platform, and according to the notice, trading is expected to begin in early 2027. Formation is a wholly owned subsidiary of Valcrest, Inc.

Formation does not plan to register the venue with the SEC and instead relies on the agency's Innovation Exemption. The SEC has not vetted the disclosures in the notice. Under that exemption, the venue is capped at 75 Tier 1 stocks and 250 Tier 2 stocks, and issuers must be notified before any third-party tokenized listing appears.

The platform runs on licensed Orca smart contracts and uses permissioned AMM pools with no order book. Only wallets that have passed KYC and KYB verification can trade. Tokenized stocks may be swapped only for money market funds or crypto assets that are not securities. Superstate and Securitize are set to supply the tokenized shares.

Christopher Montagano, Formation's president, said in a release that the company is building the venue with issuers.