Galaxy Digital, a prominent player in the cryptocurrency infrastructure space, marked a significant milestone on May 16, 2025, as its shares commenced trading on the Nasdaq stock exchange. This event concludes a protracted and arduous journey, described by CEO Mike Novogratz as both “unfair and infuriating.” The company, already listed in Canada, saw its shares open at $23.50 in their Nasdaq debut. This move comes after Galaxy Digital’s plans for a Nasdaq listing were previously reported, highlighting the company’s strategic positioning in the market.
Tokenization on the Horizon
In tandem with its Nasdaq debut, Galaxy Digital has disclosed ongoing collaboration with the U.S. Securities and Exchange Commission (SEC) to tokenize its shares. According to Bloomberg, this initiative aims to integrate the shares into decentralized finance (DeFi) applications, potentially allowing them to be used for activities like borrowing and lending. This move reflects a broader trend among crypto firms seeking a foothold in U.S. markets under seemingly more favorable regulatory conditions. Other industry players, including Metaplanet, Circle, Kraken, and Gemini, are also eyeing U.S. listings, with eToro recently completing its own on May 14.
Real-world asset (RWA) tokenization is gaining momentum in the crypto sector, albeit still occupying a small slice of the overall market. Data from RWA.xyz places the market cap at $22.5 billion, dwarfed by both global real-world asset values and major cryptocurrencies like Bitcoin. Yet, the sector is experiencing rapid growth, boasting a 111.8% increase over the past year. This burgeoning trend involves converting traditional securities, such as stocks and bonds, into blockchain-based tokens. Robinhood, for instance, is contemplating a platform that would enable European retail investors to trade these tokenized U.S. securities. The ambition to tokenize assets is shared by others in the industry, as seen in Tether’s recent acquisition to bolster its tokenization efforts.
Challenges and Opportunities
Galaxy Digital’s strategic move aligns with Chair Paul Atkins’ remarks at the SEC’s crypto roundtable on May 12, where he likened asset tokenization to the music industry’s shift from analog to digital—a transformation he asserts revitalized the American economy. The sentiment echoes in the corridors of power, with President Donald Trump’s administration fostering closer ties with crypto enterprises, invigorating the sector.
Despite these advances, Galaxy Digital’s financial health presents a mixed picture. The company manages $7 billion in assets but reported a $295 million loss in the first quarter of 2025. This financial strain highlights the challenges faced by crypto firms amid volatile market conditions and regulatory scrutiny.
The company’s ambitious plan to tokenize a wide array of financial instruments—from stocks and fixed income to exchange-traded funds (ETFs)—underscores its commitment to innovation. However, as the tokenization trend accelerates, questions linger about its long-term viability and regulatory hurdles. The SEC’s cautious approach and the need for robust frameworks to govern these new digital assets stand as critical factors shaping the landscape.
Looking Ahead
As Galaxy Digital embarks on this new chapter, the crypto market watches closely to gauge the implications of its Nasdaq listing and tokenization efforts. The potential integration of tokenized shares into DeFi could redefine market dynamics, offering new avenues for liquidity and investment. However, the path forward is fraught with uncertainties, from regulatory challenges to technological hurdles.
In the coming months, the sector will be keenly observing how Galaxy Digital and its peers navigate these complexities. The outcomes could set precedents for future crypto ventures, influencing both regulatory policies and market strategies. As the industry evolves, the interplay between traditional finance and blockchain technology continues to unfold, promising a transformative impact on global financial systems.
Source
This article is based on: Galaxy Digital lists on Nasdaq, seeks to tokenize shares — Reports
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
