Galaxy Digital Tokenizes Publicly Traded Shares
Mike Novogratz’s Galaxy Digital has tokenized its publicly traded Class A shares, marking a significant move into decentralized finance (DeFi).
Fractionalized trading on the Solana blockchain is now possible, signaling growing institutional interest in blockchain-based equities.
Galaxy plans to tokenize its shares for sale via Superstate’s Opening Bell, a fintech platform. These tokens represent actual Class A stock already listed on Nasdaq and Toronto Stock Exchange (TSX) under ticker GLXY.
Superstate is an SEC-registered transfer agent, ensuring every trade occurs on-chain with a permanent record of ownership. This differentiates the initiative from synthetic or derivative products.
A Historic Step for Tokenized Public Stocks
Galaxy Digital initially went public on the Toronto Stock Exchange in 2018, expanding to the Nasdaq Global Select Market in 2025. Today, the firm boasts a market capitalization near $9 billion.
The tokenization of Galaxy shares bridges traditional stock markets with the fast-growing DeFi ecosystem.
Galaxy joins dozens of other tokenized equities on the market. For instance, xStocks by Backed Finance has fractionalized over 60 major public companies on Solana, BNB Chain, and Tron, including Netflix, Meta Platforms, and Nvidia.
Investors can trade these assets on centralized exchanges like Kraken and Bybit or decentralized exchanges on Solana. xStocks recently added Ethereum to its platform, diversifying access to tokenized equities.
Also Read : White Whale Hikes MEXC Bounty to $2.5M in Viral Fight Over Frozen Crypto
Rapid Growth of Tokenized Assets
The tokenized asset market has surged 380% since 2022, gaining traction primarily in private credit and U.S. Treasury bonds. Institutional demand for yield-bearing and previously illiquid traditional products drove early adoption.
Tokenization is now expanding to public equities, offering investors fractional ownership on the blockchain. The total market capitalization of tokenized stocks is currently around $341 million, indicating significant room for growth as the industry matures.
Regulatory Challenges Remain
Despite growth, tokenized stocks remain in a regulatory gray area. According to Cointelegraph, John Murillo, Chief Business Officer of B2Broker, explained:
“Investors do not inherently own the additional shares. They possess tokens distributed by intermediaries, which may allow them to claim value if the shares appreciate or are bought.”
While tokenized equities offer liquidity and accessibility, investors must understand legal ownership and payout rights before participating.
