Galaxy Digital lists on Nasdaq, seeks SEC approval to tokenize stock

Galaxy Digital is in talks with the US Securities and Exchange Commission (SEC) concerning tokenizing its stock, GLXY, for DeFi integration. The development comes hours after its stock listed on the Nasdaq on Friday.

Galaxy Digital aims to tokenize its stock following Nasdaq listing

Digital asset manager Galaxy Digital has begun talks with the SEC on the possibility of tokenizing its GLXY stock, according to a Bloomberg report on Friday. The firm allegedly met with Crypto Task Force officials in March to discuss launching its stock on a blockchain network.

The firm plans to move its stock on-chain for integration into DeFi apps such as lending, staking and trading platforms. If the tokenization process succeeds, it also aims to bring many other traditional financial products on-chain, including fixed income and ETFs.

CEO Michael Novogratz highlighted that the SEC has shown interest in tokenization and crypto, highlighting the possibilities that come with it.

"We are working with the SEC to tokenize stocks. They believe in crypto, they believe in the power of tokenized networks and this technology. I think you've got to change your horizon for what's possible,"  Novogratz said in an interview with Bloomberg.

Novogratz also stated that Galaxy's tokenization process hasn't started yet.

The development comes hours after the firm's stock GLXY was listed on the Nasdaq Exchange. Galaxy earlier revealed its intent to list on the Nasdaq Exchange on April 30, stating that the listing was planned for May 16, subject to shareholder approval of a reorganization on May 9 and a green light from the exchange. 

The firm had earlier listed its stock on the Toronto Stock Exchange in 2020.

Several publicly listed companies have indicated strong interest in asset tokenization in the past year, with BlackRock, UBS and Franklin Templeton already launching tokenized funds. JPMorgan also settled its first tokenized transaction on Ondo Chain's testnet on Wednesday. In addition, Fidelity and Goldman Sachs have outlined tokenization plans in the past month.

The institutional interest aligns with discussions from the recent Crypto Task Force roundtable, which focused on tokenization.

In the event, SEC Chair Paul Atkins highlighted that securities are switching from traditional databases to blockchain ledger systems, drawing comparisons with the historical shift from analog vinyl records to digital software.