Galaxy Digital is in talks with the U.S. Securities and Exchange Commission to tokenize its shares. This initiative could let Galaxy’s stock participate in decentralized finance, including trading and lending.
galaxy met with the SEC’s crypto task force in March. They discussed registering the company’s stock on a blockchain. CEO Mike Novogratz believes tokenization is near a breakthrough, as per a Bloomberg report.
Galaxy, overseeing $7 billion in assets by March, will debut on Nasdaq Friday. Its previous listing was only in Canada. This move aligns with growing crypto market optimism and increased competition among crypto-native firms.
tokenization represents conventional assets as digital tokens on blockchains. This can enable faster trading, broader access, and continuous transactions. last year, Galaxy tokenized a 316-year-old Stradivarius violin for a loan, showcasing early uses.
The SEC shows growing interest in the field, recently hosting a tokenization roundtable. officials compared the shift in digitized assets to past media format changes. Though, tokenizing equities needs regulatory frameworks that merge blockchain tech with current securities laws.
Competitors like Coinbase and Kraken have also considered tokenized securities. Novogratz sees Friday’s listing as the start, not the finish, of this digital journey.
