Formation Securities tells SEC it plans a tokenized stock venue on Solana

The firm born from the Orca and Loopscale merger wants to run permissioned AMM pools for tokenized equities under the SEC's innovation exemption Formation Securities has formally notified the US Securities and Exchange Commission that it intends to operate a tokenized securities venue on Solana. The firm plans to run under the SEC’s innovation exemption. That framework permits conditional secondary trading of eligible tokenized stocks through permissioned automated market maker liquidity pools, but only on qualified venues. What Formation is actually proposing Formation is the entity formed by the merger of two Solana-based DeFi protocols, Orca and Loopscale. The company is headquartered in New York. Its team there is led by CEO Luke Truitt, and the plan is to lean on the trading and credit infrastructure the merged firm already operates while it pursues the licenses this kind of venue requires. The venue itself would be what the SEC framework calls a Tokenized Securities Venue, or TSV. The core mechanic is an automated market maker. Think of a traditional exchange as a matchmaking service. Buyers and sellers post prices, and the exchange pairs them up. An AMM works more like a ven...