Galaxy and Exodus Shares Are Set to Trade on Solana in 2027. What Would a Tokenized Stock Exchange Do to the SOL Price?
Wall Street stocks are heading onchain, and Solana is the stage. But a closer look at how these trades actually settle raises a pointed question about who really collects the rewards, and it may not be SOL holders.
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Shares of Galaxy Digital (NASDAQ: GLXY | GLXY Price Prediction) and Exodus Movement (NYSEAMERICAN: EXOD) may begin trading as tokens on Solana (CRYPTO: SOL) in early 2027. Formation Securities filed a notice with the SEC to create the first regulated marketplace for tokenized securities on Solana. After the announcement, Galaxy’s shares jumped 6.9%, while Exodus’s rose 3.2%. Meanwhile, SOL fell 2.8% over the previous 24 hours to $87.
Formation plans to list Galaxy, Exodus, and Forward Industries (NASDAQ: FWDI) on its launch day, although it is currently seeking permission from all three companies. With the SOL price down 6.8% over the past week, could a stock exchange on Solana positively influence the SOL price?
Formation Aims to Create Solana’s First Regulated Tokenized Stock Venue
Formation was established in New York by combining Orca, a Solana trading protocol, and Loopscale, a Solana lending protocol. According to Formation’s website, Orca has processed over $550 billion in trading volume since 2021, while Loopscale has facilitated more than $2 billion in loans. Formation shared the SEC notice about the new trading platform on its official X (formerly Twitter) account.
The notice cites the SEC’s Innovation Exemption, established on September 17. This rule allows a venue to trade tokenized stocks without registering as a national stock exchange for five years. Each venue must be based in the U.S., verify trading-wallet identities, and notify companies 30 days before listing their stocks. If a company objects, the listing cannot proceed, which is why Formation is requesting consent.
Formation’s announcement does not mention any SEC approval or broker-dealer registration, the license generally required to trade securities on behalf of customers. Securitize, a company that converts shares into tokens, is expected to supply the shares at launch and promoted its own product in its post about the venue.
For Galaxy and Exodus, this listing represents a new opportunity to attract investors. Galaxy profits from trading, lending, asset management, and staking, reporting $8.17 billion in revenue from its Digital Assets division in the third quarter, plus $89 million from its Data Centers division. Exodus generates revenue through wallet swaps, which totaled $1.1 billion in the second quarter, and from card processing after concluding deals with Monavate and Baanx on May 1.
The Announcement Gives SOL No Role in Payments or Fees
The announcement lacks clarity regarding the payment methods for these trades. While Solana’s official account says shares will settle “atomically onchain, 24/7,” it does not specify the payment currency. Atomic settlement refers to the immediate exchange of tokens and payments, but the specifics remain vague. Additionally, it does not indicate that SOL will play a role in payments, fees, or collateral.
Recent trends suggest that a stablecoin might be the primary payment method. For instance, when Securitize launched stocks on Solana in October, the trades were settled in USD Coin (USDC), which is pegged to the dollar. This arrangement left SOL with only negligible network fees per transfer, and at the time, SOL was trading at $110, down 4% in 24 hours.
Whale Alert noted the minting of $250 million in USDC on Solana on November 9, indicating that the dollars needed for this trading activity are already present on the network. The trading venue will also feature its own tokens. Formation describes the platform as built on the “ORCA and xORCA token network,” suggesting that if any coin derives benefits from the venue’s operations, it would likely be Orca’s token.
Solana Lags Behind Ethereum in Tokenization, and the Initial Stocks Are Minor Additions
Currently, Ethereum (CRYPTO: ETH) remains at the forefront of tokenization. According to Token Terminal, the total value of tokenized real-world assets has soared to $50.3 billion, 10.3 times its previous amount, with Ethereum hosting $20.9 billion, compared to $6.2 billion on the BNB Chain, and $4.8 billion on Solana. This puts Ethereum at 4.4 times the tokenized assets available on Solana, and larger institutions have put tokenized funds on both networks.
In the last month, traders conducted $12.4 billion in tokenized stock trades on decentralized exchanges, and Solana handled $3.9 billion of tokenized stock trades in October. The three stocks planned for launch (Galaxy, Exodus, and Forward Industries) are relatively small compared to these totals, with Exodus valued at approximately $46 million. With trades costing mere fractions of a cent in fees, the additional demand for SOL from this trading is likely to be minimal.
Treasury companies drive direct demand for SOL. For example, DeFi Development Corp. added 8,881 SOL, valued at around $773,000, marking its ninth consecutive week of purchases, according to a November 9 SEC filing. The company now holds approximately 2,609,829 SOL, valued at around $227 million.
Will a Tokenized Stock Exchange on Solana Lift the SOL Price?
Based on current information, a tokenized stock exchange on Solana is unlikely to significantly increase the SOL price. Initial listings and trading volume may have limited impact, given the broader crypto market and Solana’s position relative to competitors.
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Sam Daodu is a crypto analyst and the editor of 24/7 Wall St.'s Crypto Desk, where he covers Bitcoin, XRP, Ethereum, Solana and the altcoins investors search for most. His work focuses on price levels, spot ETF flows, on-chain data and the regulatory decisions that move crypto markets, written so a first-time buyer and a seasoned trader can both use it.
Sam has written about crypto professionally since 2019 and has published more than 2,000 articles. Before joining 24/7 Wall St., he wrote for crypto media outlets and Web3 companies and ghostwrote for crypto founders and token launches. His analysis is syndicated on Yahoo Finance, MSN and AOL and has been cited by other crypto news sites. He also founded MacLabs Marketing, a content and personal branding agency for crypto founders and executives.
When he isn't reading charts, Sam is usually at the gym or watching One Piece, a series he maintains has better tokenomics than most altcoins.
