Galaxy Digital (GLXY) stockholders now have the option to turn their shares into digital tokens on the blockchain. The crypto-finance and data center company said investors can tokenize their shares through Superstate, a fintech startup in its venture portfolio. This process allows shares to be legally represented on-chain while still carrying the same rights and protections as traditional stock.
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So far, 21 investors have used the system, with a total of 32,374 Galaxy shares tokenized on the Solana blockchain. The project is mainly designed for institutional investors and professional traders, who are more familiar with navigating registration requirements and digital asset platforms.
Galaxy Digital Pushes Tokenization Forward
The company’s leadership said they want to do more than just talk about blockchain’s potential. Instead, they are actively moving stock trading onto blockchain rails. Alex Thorn, Galaxy’s head of research, said the company wants to push things forward rather than wait for regulators to give them a green light.
By linking real stock to blockchain tokens, Galaxy is offering investors the chance to trade shares with the benefits of digital assets. These benefits include 24-hour trading, faster settlement, and the ability to use peer-to-peer transactions.
Galaxy Digital Confronts Regulatory Uncertainty
Tokenization has been discussed for years, but many firms held back due to unclear rules. Galaxy and Superstate are taking a different approach. They said their initiative works within current laws and that they are engaging directly with the U.S. Securities and Exchange Commission.
The biggest roadblock is Automated Market Makers, which are blockchain-based trading engines. Regulators have not yet set rules for how these can operate with securities. As a result, Galaxy’s tokenized shares can be traded directly between investors but cannot yet be bought and sold on demand in a fully open market.
Galaxy Digital Creates a First Step for Others
Other companies have experimented with tokenized assets, but most used synthetic derivatives rather than real shares. Robinhood (HOOD) introduced U.S. stock tokens in Europe, and Kraken added tokenized trading on Ethereum. However, Galaxy’s method is different. It gives holders direct ownership rights, making the tokens legally equal to their regular stock.
Superstate CEO Robert Leshner said this step is a milestone that the entire industry can learn from. He added that while this does not create a full tokenization revolution today, it opens the door to one in the near future.
Is Galaxy Digital a Good Stock to Buy Now?
Galaxy Digital stock (TSE:GLXY) carries a Strong Buy consensus, based on 11 Wall Street analyst ratings over the past three months. Out of those, 10 analysts call it a Buy, one rates it a Hold, and none suggest a Sell.
The average 12-month GLXY price target stands at C$49.65, which implies nearly a 49% upside from the last price.
