Solana News Today: Capital Markets Go Onchain as Galaxy Tokenizes Shares—Setting a New Legal and Technological Frontier

Galaxy Digital (GLXY) has made history by becoming the first publicly traded U.S. equity to be tokenized on a major public blockchain, marking a significant milestone in the evolution of capital markets. The company has partnered with Superstate, a financial technology firm, to tokenize its Class A common shares on the Solana blockchain. The move is expected to bridge traditional financial systems with decentralized infrastructure, leveraging the benefits of blockchain such as transparency, programmability, and faster settlement times [1].

The tokenization process involves the migration of existing shares into onchain versions, which are fully registered with the SEC and maintain all the legal and economic rights of traditional shares. Shareholders can convert their holdings via a process involving Superstate's digital transfer agent services, enabling the transition from traditional to tokenized equity through direct registration systems (DRS) and subsequent minting on the Solana network [2]. The tokenized shares are represented at the contract address 2HehXG149TXuVptQhbiWAWDjbbuCsXSAtLTB5wc2aajK, and any tokens from other addresses claiming to represent GLXY shares are considered fraudulent [3].

This initiative is not merely a technological upgrade but also a strategic regulatory engagement. Galaxy and Superstate have been working closely with the SEC and other financial regulators to establish a framework for the tokenization of public equities. The SEC, under its Project Crypto initiative, has been seeking to develop regulations that support innovation while preserving investor protection. Galaxy's move aligns with the commission's goal of creating "rational and workable rules of the road" for decentralized systems [1].

The tokenization of GLXY shares is part of a broader trend in the financial industry where traditional assets are being explored for blockchain integration. Unlike synthetic or wrapped tokenized equities, Galaxy's tokenization approach does not require intermediaries or wrappers; instead, it represents actual equity shares of the company. This direct tokenization method ensures that onchain GLXY shares confer the same rights as traditional shares, including dividends, voting rights, and participation in corporate actions [2].

Despite the progress, regulatory clarity remains a critical factor for the future of onchain trading. While Galaxy has not yet enabled AMM-based trading of its tokenized shares, it anticipates that regulatory developments will allow for such mechanisms to emerge. Galaxy and Superstate are actively engaging with the SEC to define a compliant model for AMM trading of public equities [1]. The firm is also considering support for Ethereum L1 in the future and remains open to evaluating other blockchains as the technology continues to evolve [2].

Market analysts suggest that the tokenization of equities may follow a similar trajectory to the adoption of ETFs, where initial skepticism gave way to widespread acceptance. As onchain markets mature, liquidity and user experience improvements could drive a shift in trading volumes from centralized to decentralized platforms [1]. However, challenges remain, including potential price divergences between traditional and tokenized shares, liquidity fragmentation, and the uncertainty of regulatory outcomes [2].

Galaxy’s CEO, Mike Novogratz, emphasized the significance of this development, stating that the goal is to integrate the best aspects of blockchain—transparency, programmability, and composability—into the traditional financial system [2]. The company's partnership with Superstate is seen as a foundational step in building an onchain capital market that can scale beyond its own equity to benefit the broader financial ecosystem [3].

Source: [1] Galaxy Tokenizes GLXY Stock on Solana with Superstate (https://www.galaxy.com/insights/research/tokenized-glxy) [2] Galaxy (GLXY) Tokenizes Its Shares on Solana Blockchain ... (https://www.coindesk.com/business/2025/09/03/galaxy-digital-tokenizes-its-shares-on-solana-with-superstate) [3] Galaxy and Superstate Launch GLXY Tokenized Public Shares on Solana (https://www.prnewswire.com/news-releases/galaxy-and-superstate-launch-glxy-tokenized-public-shares-on-solana-302544834.html)