Galaxy Digital Debuts on Nasdaq, Plans Share Tokenization

Galaxy Digital Holdings Ltd. has successfully completed a direct listing on the Nasdaq, marking a significant milestone in its market expansion efforts. The company's shares began trading on May 16, opening at $23.50. This move comes after a years-long process that CEO Mike Novogratz described as unfair and infuriating. The listing aligns Galaxy Digital more closely with U.S. regulatory standards, which may foster greater investor confidence. The U.S. Securities and Exchange Commission (SEC) approved Galaxy Digital's reorganization, effective on April 7, 2025, further positioning the company for potential strategic advantages in the fintech landscape.

On the same day of its Nasdaq debut, Galaxy Digital announced that it is working with the SEC to tokenize its shares. The tokens representing Galaxy Digital’s shares could be used in decentralized finance applications, such as borrowing or lending. This initiative underscores the company's commitment to driving innovation and growth within the digital asset and artificial intelligence infrastructure sectors. By integrating blockchain technology into its securities framework, Galaxy Digital aims to revolutionize how stocks are traded, settled, and managed. This move is part of a broader trend in the financial industry, where the tokenization of assets has been gaining traction. This development hints at a significant shift in how securities may be traded, settled, and managed, potentially altering the landscape of financial markets.

Galaxy Digital is among several crypto companies looking to access the U.S. markets under a friendlier regulatory regime. Companies that are also exploring or working on a U.S. listing include Metaplanet, Circle, Kraken, and Gemini. Trading platform eToro completed a listing on May 14. The company has $7 billion in assets on its platform and suffered a loss of $295 million in the first quarter of 2025. The closer relationships that the U.S. President has developed with the industry have sparked new enthusiasm for crypto activity in the country. In addition to the flurry of companies preparing for a U.S. public listing, some other crypto companies have announced their reentry into the local market.

Real-world asset (RWA) tokenization is gaining traction in crypto, though it still represents a small share of the market. One rising trend is tokenizing securities, essentially turning assets like stocks and treasury bonds into tradable tokens on the blockchain. Galaxy Digital has plans to tokenize everything from stocks and fixed income to ETFs. At the SEC’s crypto roundtable on May 12, Chair Paul Atkins compared the tokenization of assets to the music industry moving from analog to digital, which, according to Atkins, greatly benefited the American economy. The discussions with the SEC focus on the potential benefits of tokenizing stocks, including streamlined processes, reduced costs, and increased transparency for investors. This initiative underscores the company's commitment to driving innovation and growth within the digital asset and artificial intelligence infrastructure sectors.