Galaxy Digital is in talks with the U.S. Securities and Exchange Commission (SEC) about tokenizing its shares. This move could allow Galaxy’s stock to be used in decentralized finance applications like trading and lending.
Galaxy met with the SEC’s crypto task force in March to discuss registering its stock on a blockchain. CEO Mike Novogratz believes in the power of tokenized networks, stating that tokenization is “really close” to becoming a reality. The company, which manages $7 billion in assets, will start trading on the Nasdaq on Friday, expanding from its previous listing in Canada. This step comes as crypto markets show renewed optimism and competition among crypto-native firms going public intensifies.
Tokenization turns traditional assets into digital tokens on blockchains. These tokens can speed up transactions, increase access, and enable continuous trading. Last year, Galaxy tokenized a 316-year-old Stradivarius violin to secure a loan, demonstrating early use cases of the technology. The SEC is increasingly interested in this space, recently hosting a roundtable on digitized assets.
Tokenization can revolutionize finance by enabling faster settlements and broader access. Though, it requires regulatory frameworks that align blockchain technology with current securities laws. Othre firms like Coinbase and Kraken have also considered tokenized securities.
Galaxy’s Nasdaq debut marks a new chapter. Novogratz said, “It’s the beginning and not the finish.” The SEC’s growing interest in tokenization shows the potential for a notable shift in how assets are managed and traded.
