Bitcoin News Today: Galaxy Digital Explores Tokenizing Shares for On-Chain Trading to Boost Liquidity

Galaxy Digital is exploring the possibility of tokenizing its Nasdaq-listed shares to facilitate on-chain trading, signaling a potential shift toward blending traditional equity markets with blockchain-based platforms. In a recent SEC filing, the company disclosed it is actively evaluating the feasibility of converting its Class A common stock into tokens, a move that could make its shares accessible on decentralized exchanges [1]. This initiative is part of a broader strategy to integrate blockchain infrastructure with its existing financial services, enabling a more liquid and globally accessible trading environment.

The firm has partnered with Superstate Services, a registered digital asset transfer agent and operator of the Opening Bell platform, to assess the logistics and compliance requirements of tokenizing its equity. Superstate has already pioneered the tokenization of assets like USTB and USCC, demonstrating experience in bringing traditional financial instruments onto the blockchain [1]. CEO Mike Novogratz has previously expressed interest in embedding Galaxy’s stock into decentralized finance (DeFi) ecosystems, where it could support activities such as lending and secondary trading.

This initiative follows a strong Q2 2025 performance for Galaxy Digital, which reported a $30.7 million profit, a dramatic turnaround from a $295 million loss in the previous quarter. The earnings were attributed to strategic actions, including a significant bitcoin transfer and the completion of its Nasdaq listing. The company also emphasized its focus on digital asset treasury markets and the integration of on-chain and off-chain systems [2][3].

Currently, Galaxy Digital holds $921 million in on-chain assets, with major positions in Bitcoin, Ethereum, Solana, USDT, and USDC. The company has previously tokenized digital assets for DeFi protocols, such as converting Bitcoin and Ethereum into wrapped tokens (wBTC and wETH), giving it a foundation in tokenization processes that may now be extended to its own equity [4][5].

While no timeline has been set for implementing the tokenization of its shares, the move aligns with a broader trend of asset tokenization and the development of more transparent, efficient financial systems. Regulatory developments, including the approval of spot ETFs and legislative progress in the U.S., are also contributing to a more favorable environment for on-chain trading [6].

Galaxy Digital’s stock has seen recent volatility. On August 1, its shares dropped 7% in response to mixed market reactions to the Q2 earnings report. Earlier, the stock had fallen over 8% following a revenue and earnings per share miss [7][8]. Despite these short-term fluctuations, the company remains optimistic about long-term growth in the digital asset sector and its role in shaping the future of institutional finance.

The exploration of tokenized equity is a continuation of Galaxy Digital’s strategy to position itself at the intersection of traditional and digital finance. By leveraging its existing blockchain infrastructure and expertise, the company aims to offer innovative solutions that appeal to a growing base of investors interested in both traditional and digital assets [9].

Sources:

[1] Galaxy Digital Explores Turning Its Stock Into Tokens for Onchain Trading (https://coindoo.com/galaxy-digital-explores-turning-its-stock-into-tokens-for-onchain-trading/)

[2] Earnings call transcript: Galaxy Digital Q2 2025 sees stock... (https://www.investing.com/news/transcripts/earnings-call-transcript-galaxy-digital-q2-2025-sees-stock-dip-amid-market-reaction-93CH-4170866)

[3] Galaxy Digital turns $295M loss into $30.7M profit on... (https://www.ainvest.com/news/galaxy-digital-turns-295m-loss-30-7m-profit-ebitda-surge-asset-gains-2508/)

[4] Galaxy Digital On-Chain Holdings Reach $921 Million (https://blockchain.news/flashnews/galaxy-digital-on-chain-holdings-reach-921-million-major-btc-eth-sol-usdt-and-usdc-positions-revealed)

[5] [10-Q] Galaxy Digital Inc. Quarterly Earnings Report (https://www.stocktitan.net/sec-filings/GLXY/10-q-galaxy-digital-inc-quarterly-earnings-report-66ba5679de27.html)

[6] The Evolution of Digital Asset Secondary Markets - 2025 (https://members.delphidigital.io/reports/the-evolution-of-digital-asset-secondary-markets-2025)

[7] Galaxy Digital (GLXY) Stock: Plunges 7% as Q2 Profit... (https://coincentral.com/galaxy-digital-glxy-stock-plunges-7-as-q2-profit-soars-to-30-7m-amid-helios-expansion-and-nasdaq-debut/)

[8] Solana treasury firms accumulate as new member enters... (https://sherwood.news/crypto/solana-treasury-firms-accumulate-as-new-member-enters-the-space/)

[9] Investors Shift from Top Meme Tokens toward Utility... (https://coincentral.com/investors-shift-from-top-meme-tokens-toward-utility-projects-like-rollblock-and-sei-coin/)