Overview
- Formation told the SEC on Monday, November 9, 2026 that it intends to operate a permissioned automated market‑maker venue on the Solana blockchain and targets an early‑2027 rollout.
- The proposed venue would let verified investors trade tokenized versions of U.S. listed shares around the clock with near‑instant atomic settlement while transfer agents keep official shareholder records.
- Formation is the merger of Orca and Loopscale and plans to use Orca’s AMM technology plus tokenization partners Superstate and Securitize and custody and compliance vendors such as Anchorage, BitGo, Fireblocks, Predicate, Sec3, Solidus Labs and TRM Labs.
- The SEC’s September Innovation Exemption allows conditional trading only for tokens that convey the same economic and voting rights as underlying shares and imposes public disclosure, volume and listing limits.
- The notice is an early step not an approval because Formation still must obtain required licenses and meet SEC conditions and the exemption itself expires on September 17, 2031 which limits the venue’s regulatory runway and long‑term certainty.