Formation Securities, a New York-based firm formed by the merger of Orca and Loopscale, has notified the US Securities and Exchange Commission of its intent to operate a tokenized securities venue on the Solana blockchain.
The company plans to utilize the SEC’s innovation exemption, which allows for the secondary trading of tokenized stocks through permissioned automated market maker pools. This exemption, issued on September 17, 2026, remains in effect until September 17, 2031.
Under these rules, tokenized assets must provide the same economic and voting rights as traditional shares, excluding synthetic products. Formation Securities intends to leverage existing trading and credit infrastructure from its parent protocols while pursuing necessary regulatory licenses.
The competitive landscape for regulated equity trading on blockchains is growing. By late October 2026, at least three entities, including TSV LLC on Canton Network and OKXICE on X Layer, had submitted similar notices to the SEC.
