Galaxy Digital’s Bold Move: Tokenizing Its Own Stock to Bridge Wall Street and DeFi
Galaxy Digital is collaborating with the SEC to tokenize its shares, aiming to integrate traditional equities into decentralized finance platforms.
In a groundbreaking development, Galaxy Digital, a leading digital asset and blockchain firm, has initiated discussions with the U.S. Securities and Exchange Commission (SEC) to tokenize its own shares. This initiative aims to represent traditional equities as blockchain-based tokens, facilitating their use in decentralized finance (DeFi) applications such as lending, staking, and trading .
The announcement coincided with Galaxy Digital’s debut on the Nasdaq stock exchange on May 16, marking a significant milestone in the company’s efforts to bridge the gap between traditional finance and the burgeoning world of digital assets . Previously listed on Canada’s TSX Venture Exchange, Galaxy’s move to Nasdaq underscores its commitment to expanding its presence in the U.S. financial markets.
CEO Michael Novogratz emphasized the transformative potential of tokenized networks, stating, “We are working with the SEC to tokenize stocks. They believe in crypto, they believe in the power of tokenized networks and this technology. I think you’ve got to change your horizon for what’s possible” .
Tokenizing traditional assets like stocks and bonds offers several advantages, including faster settlement times, enhanced transparency, and 24/7 trading capabilities. Galaxy Digital’s initiative aligns with a broader industry trend, as other major financial institutions explore the tokenization of real-world assets to improve efficiency and accessibility in financial markets.
