The post Galaxy Digital Partners With Superstate to Bring Stocks to the Blockchain appeared first on Coinpedia Fintech News
Galaxy Digital is making history as it merges Wall Street with blockchain.
In a latest move, it announced that its stock can now be tokenized, giving investors the speed, flexibility, and transparency of crypto, all while retaining the full rights and protections of traditional shareholders.
Galaxy Digital Tokenizes Its Stock
In a latest press release, it announced that it has partnered with Superstate to let shareholders turn their GLXY stock into digital tokens. Notably, this is the first time a public company has tokenized its SEC-registered equity directly on a major blockchain.
Investors can immediately tokenize and manage their shares using Superstate’s Opening Bell platform.
Superstate works directly with companies to turn their actual SEC-registered shares into tokens, unlike other tokenized stock offerings that use synthetic models or wrappers without the company’s involvement. These tokens are actual Galaxy Digital Class A Common Stock, carrying the same rights.
Every time a GLXY token changes hands, Superstate updates ownership on the blockchain instantly.
CEO and founder Mike Novogratz says that the goal is to bring crypto’s transparency and flexibility to traditional stocks with tokenized shares, creating a model that can grow for the entire market.
Galaxy Shares Gain 24/7 Blockchain Trading Potential
Galaxy’s launch on Opening Bell is a big step forward for public stocks.
The shares are fully compliant and legally the same as traditional stock but now move with the speed, transparency, and efficiency of blockchain. Tokenized on Solana, Galaxy shares can trade 24/7 with near-instant settlement.
Galaxy and Superstate are also exploring ways for tokenized public shares to trade on Automated Market Makers (AMMs) in a way that follows SEC rules, as part of Project Crypto.
If approved, Galaxy’s tokenized shares and future listings on Opening Bell could appear on AMMs and other DeFi platforms. This would make it easier and faster to buy, sell, or move them.
It is important to note that only verified, KYC-approved investors can hold and transfer Galaxy’s tokenized shares in their crypto wallets.
Tokenization Gains Momentum
Blockchain is moving beyond crypto, now reaching traditional stocks, bonds, and funds. More firms are experimenting with tokenizing these assets to make them faster and easier to trade. BlackRock CEO Larry Fink also wrote in a letter recently that any asset, stocks, bonds, or funds can be tokenized.
Tokenization Brings Innovation, But Risks Remain
However, EU regulators have raised concerns that despite the convenience and innovation of tokenized stocks, investors may not receive the full rights of traditional shareholders. Most of these offerings are often small, illiquid, and risky, and require clear safeguards.
Binance founder CZ has also noted that while tokenization is transforming markets, bringing real-world assets and equity exposure to crypto, risks still remain.