Galaxy Digital Approved for Nasdaq Listing After SEC Greenlight

Galaxy Digital, a prominent crypto investment firm, has received approval from the US Securities and Exchange Commission (SEC) to redomicile in Delaware. This approval paves the way for the company's anticipated listing on the Nasdaq stock exchange, marking a significant step in the integration of crypto-native businesses into traditional finance.

The relocation to Delaware is strategically important as the state is known for its business-friendly legal environment and regulatory framework, which is familiar to US investors. Galaxy Digital plans to commence trading on Nasdaq under the ticker symbol GLXY in mid-May. However, this listing is contingent upon two final approvals: clearance from the Toronto Stock Exchange, where Galaxy is currently listed, and a vote from shareholders at a special meeting scheduled for May 9.

Galaxy Digital is not alone in this trend. Several other crypto businesses are expanding into public markets, reflecting a broader industry shift towards adopting regulatory frameworks and business models characteristic of traditional finance. This trend could enhance the credibility and attract institutional capital to the crypto sector. For instance, Strategy, previously known as MicroStrategy, has been included in Nasdaq’s list of its largest 100 companies by market capitalization. Additionally, stablecoin issuer Circle filed an initial public offering (IPO) in April. Firms like BitGo, Coinbase, Paxos, and Circle have also been exploring bank charter applications, further blurring the lines between crypto-native and traditional financial institutions.

Galaxy Digital’s upcoming listing on Nasdaq is more than just a corporate milestone; it symbolizes the evolving relationship between crypto and traditional financial markets. As companies like Galaxy, Circle, and Paxos align more closely with regulated financial standards, the distinction between crypto-native businesses and traditional financial institutions becomes increasingly blurred. This trend suggests a growing acceptance of crypto within mainstream finance, potentially leading to greater institutional involvement and investment in the sector.