Solana News: Formation Files SEC Notice for 24/7 Stock Trading

Solana News followed Formation Securities after its Nov. 9 notice to U.S. regulators. The company outlined a tokenized stock venue using Solana for round-the-clock U.S. trading. It targeted early 2027 for its first transactions.

The proposal linked public-company shares with blockchain settlement under a new Securities and Exchange Commission (SEC) exemption. However, the notification did not constitute SEC approval, and investors could not yet trade on the proposed venue.

Solana News: Formation Names Three Planned Stock Listings

Formation’s announcement named Exodus Movement, Forward Industries and Galaxy Digital as its intended initial issuers. Their respective U.S. stock tickers are EXOD, FWDI and GLXY. The firm expected to offer tokenized versions of eligible shares rather than separate synthetic price-tracking products.

In its public notice, Formation identified the securities but left the final trading arrangements subject to further disclosures. It also stated that the SEC had not reviewed the notice’s merits or accuracy. The firm had not commenced regular trading as of the filing.

Formation President Christopher Montagano said the project intended to work directly with publicly listed companies. This approach reflected a regulatory requirement allowing issuers to object to unaffiliated third-party tokenizations. The company’s announcement named Superstate and Securitize as prospective tokenization providers.

Formation also identified Alpaca, Passage by CoinList and several custody and wallet businesses as planned distribution channels. These arrangements would offer eligible investors access beyond Formation’s own interface. The company did not announce confirmed transaction volumes or revenue projections.

How Formation’s Tokenized Stock Venue Would Operate

Formation’s filing described permissioned automated market maker pools using technology licensed from decentralized exchange Orca. Unlike conventional stock exchanges, those pools would execute transactions against available liquidity without a central order book. Only approved wallets could trade or provide liquidity.

Investors would hold tokenized shares in compatible digital wallets and pay with eligible stablecoins or other permitted assets. Under the proposed atomic settlement process, securities and payment would transfer within the same Solana transaction. A failed transaction would transfer neither asset, although network fees could still apply.

The structure aimed to support 24/7 U.S. stock trading without conventional exchange trading hours. Nevertheless, trading would stop when the underlying listed security faced an official exchange halt. Continuous access therefore would not override existing market protections.

Formation’s announcement said transfer agents would keep official shareholder records despite onchain trades. Token holders would retain voting, dividend and corporate-action rights, according to the firm. The filing required backing reviews before admitting each stock.

Solana News: SEC Exemption Sets Trading Conditions

The SEC’s Sept. 17 order announcement granted temporary, conditional relief from traditional exchange registration requirements. It applied to qualifying venues that traded tokenized National Market System stocks through permissioned liquidity pools. The exemption also imposed security-level and trading-volume limits.

SEC Chairman Paul Atkins explained that federal anti-fraud and anti-manipulation rules remained applicable. The framework required issuers’ rights to survive tokenization and gave companies an objection mechanism. Eligible operators could not treat an exemption as unrestricted authorization.

The regulator’s operating guidance required public notices at least 30 calendar days before trading began. Operators had to notify SEC staff within one business day of publication.

SEC staff guidance urged publication after establishing production-ready access standards. The regulator also warned that appearing on its venue list did not establish compliance.

Formation’s notice described identity checks, sanctions screening and wallet approvals before participant access. The company retained authority to restrict wallets and pause operations. For Solana crypto users, the venue’s permissioned structure differs from unrestricted token trading.

Next Steps for 24/7 U.S. Stock Trading

Formation’s public filing outlined transaction reporting and market surveillance procedures ahead of its intended launch. The company planned to publish prices, sizes and timestamps within 10 minutes of completed trades. It also proposed daily liquidity-pool balances and volume disclosures.

Superstate CEO Robert Leshner and Securitize CEO Carlos Domingo endorsed their expected roles in Formation’s announcement. Still, integration plans did not establish initial liquidity or investor participation. Additional securities would require updated public disclosures before trading.

The next verifiable milestone is Formation’s planned early-2027 launch, subject to the SEC exemption’s conditions. Investors can review subsequent amendments to its public notice for confirmed assets, access rules and operating details.