Ethereum News Today: Galaxy Digital Bridges Traditional Finance and Blockchain with On-Chain Shares

Galaxy Digital has moved a step closer to integrating blockchain technology with traditional equity markets by tokenizing its Class A common stock on the Solana blockchain through a partnership with Superstate. This move is part of a growing trend toward tokenizing real-world assets (RWAs) and aims to combine the compliance of traditional equity structures with the speed and transparency of blockchain technology. Galaxy Digital, listed on Nasdaq, has partnered with Superstate to issue its shares on the Solana network via Superstate’s Opening Bell platform. The tokens will maintain the full rights of SEC-registered equity, including the ability to hold and transfer shares on-chain.

Unlike synthetic or wrapped tokenized stocks that function without direct involvement from the issuer, Galaxy’s tokenized shares are issued directly on-chain and are tracked by Superstate as a transfer agent. This system ensures that changes to the shareholder register are updated in real time as tokens move between verified wallets. The firm emphasized that this approach enhances compliance while leveraging blockchain benefits such as fast settlement, transparency, and 24/7 availability. Galaxy Digital’s CEO, Mike Novogratz, stated that the initiative aims to build an on-chain capital market that bridges traditional equities with next-generation infrastructure, bringing the advantages of crypto—such as programmability and composability—into the traditional financial space.

Meanwhile, Kraken and Backed Finance have expanded their tokenized equity offerings by launching xStocks on Ethereum, with support for over 60 tokenized stocks, including shares of major companies such as NVIDIA, Amazon, Tesla, Meta, and Walmart. The xStocks initiative, previously launched on Solana, BNB Chain, and TRON, now exists as ERC-20 tokens fully collateralized 1:1 by the underlying equities. This allows investors to move tokenized stocks and ETFs between Kraken and self-custodial wallets while accessing Ethereum-based DeFi protocols. According to analytics platform RWA.xyz, the tokenized stock market capitalization stands at $342 million, accounting for 1.2% of the broader $27.9 billion tokenized RWA market.

The initiative reflects a broader industry movement toward integrating traditional financial instruments with blockchain infrastructure. Since its launch in June, xStocks has generated over $3.5 billion in trading volume across centralized and decentralized exchanges. Kraken’s co-CEO, Arjun Sethi, highlighted that Ethereum’s status as the largest smart contract network allows xStocks to reach thousands of decentralized applications, making tokenized equities more accessible and portable across ecosystems.

Despite the growing interest in tokenized equities, the space remains under regulatory scrutiny. Tokenized stocks often exist in a legal gray area, with some offerings lacking the same investor protections as traditional equities, such as voting rights or direct claims on company assets. Regulators, including the U.S. Securities and Exchange Commission (SEC), have called for tighter oversight, particularly around compliance and investor protection. Nevertheless, firms continue to explore the potential of tokenized equities, with other major players such as Gemini and Robinhood also introducing similar products for EU investors.

Source:

[1] Galaxy Digital Tokenizes its Shares on Solana With Superstate (https://www.coindesk.com/business/2025/09/03/galaxy-digital-tokenizes-its-shares-on-solana-with-superstate)

[2] Tokenized Equity Product xStocks Launches on Ethereum (https://cointelegraph.com/news/xstocks-launches-ethereum-60-tokenized-stocks-nvidia-tesla)

[3] Kraken, Backed Bring Tokenized Equities Offering to Ethereum Mainnet (https://www.coindesk.com/business/2025/09/02/kraken-backed-bring-tokenized-equities-offering-to-ethereum-mainnet)