Galaxy Digital eyes tokenizing its own shares in SEC talks

Galaxy Digital is in discussions with the U.S. Securities and Exchange Commission about tokenizing its own shares and potentially other equities using its in-house digital asset platform. 

The move could allow Galaxy’s stock to be used in decentralized finance applications like trading and lending. The company met with the SEC’s crypto task force in March to explore registering Galaxy’s stock on a blockchain. 

“They believe in the power of tokenized networks,” Novogratz said, noting that tokenization feels “really close” to becoming a reality, according to a Bloomberg report.

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.