Galaxy Digital Plots Share Tokenization Move—Wall Street Braces for Another ’Innovation’

Mike Novogratz’s crypto powerhouse is in talks with the SEC to turn its own stock into blockchain tokens—because why settle for traditional shares when you can add a layer of distributed ledger complexity?

The play: Galaxy wants to bridge the gap between TradFi and DeFi by making its equity tradeable 24/7. Because nothing says ’liquidity’ like watching your stake moon—or crater—while Wall Street sleeps.

Bonus jab: If past is prologue, expect this ’groundbreaking’ move to involve at least three middlemen taking fees for solving a problem that didn’t exist.

Galaxy’s Nasdaq debut

Galaxy, which managed $7 billion in assets at the end of March, will begin trading on the Nasdaq on Friday after previously being listed only in Canada. The listing comes amid renewed bullish sentiment in crypto markets and increased competition among crypto-native companies going public.

Tokenization allows traditional assets to be represented as digital tokens on blockchains. These tokens can enable faster settlement, broader access, and continuous trading. Last year, Galaxy tokenized a 316-year-old Stradivarius violin to secure a loan, showing early use cases of the technology, according to Bloomberg.

The SEC has shown growing interest in the space, recently hosting a tokenization roundtable where officials compared the shift to digitized assets to past transitions in media formats. 

However, tokenizing equities still requires regulatory frameworks that reconcile blockchain technology with current securities laws.

Other firms, including Coinbase and Kraken, have floated similar ideas around tokenized securities. 

Novogratz said Friday’s listing marks a new chapter: “We are going to ring the bell… it’s the beginning and not the finish,” according to Bloomberg.