Galaxy Digital Tokenizes GLXY Shares on Solana Blockchain

Galaxy Digital Tokenizes Stock Now Trades Onchain via Solana

Galaxy Digital has officially tokenized its Nasdaq listed Class A shares on the Solana blockchain. The company worked with fintech company Superstate to help verified investors convert and hold real equity tokens onchain.

These tokenized shares have no dilution and meet the requirements of U.S. securities laws. The project builds on Superstate's Opening Bell platform, which syncs shareholder records onchain in real-time.

https://x.com/novogratz/status/1963226089045602436

The new structure is faster to settle and enables 24/7 trading between approved KYC-compliant investors. Galaxy is the first public company to tokenize Equities registered with the SEC directly on a public blockchain.

Unlike a synthetic product, these tokens are actual shares and are issued by the issuer and recorded by a registered TFA. Galaxy emphasized the utilization of a verified contract address to prevent the generation of counterfeit tokens.

Solana Infrastructure Enables Speed, Security, and Transparency

Galaxy chose the Solana network for its scalability, low fees, and ability to provide real-time settlements. This decision is consistent with the firm's commitment to efficient and transparent capital markets.

Solana currently has 3rd largest tokenised stock volume and nearly $500 million in value locked. The network continues to be attractive for real-world asset tokenisation because of its technical strengths.

Ownership transfers of GLXY shares now update instantly on-chain through Superstate’s transfer agent system. This system removes the need for traditional intermediaries and helps ensure regulatory compliance.

Tokenised shares will only be accessible to investors who have completed full KYC verification. These users are able to hold and trade shares directly from their self-custody crypto wallets.

Galaxy is investigating how these can be combined on-chain with Automated Market Makers (AMMs). This next phase will be determined by regulatory frameworks under the SEC's Project Crypto initiative.

Strategic Moves Signal Shift in Market Infrastructure

Galaxy's tokenisation initiative fits within its broader vision of integrating traditional finance with blockchain-based infrastructure. The company believes on-chain equity is a scalable solution in modern markets.

Superstate, a company owned by Galaxy Ventures, is the SEC-registered agent for shareholder records. This move further solidifies Galaxy's position as a driving force in the development of future tokenised capital markets.

The effort may inspire other public companies to consider tokenisation as a way to enable regulatory-compliant trading. Tokenised equities currently account for over $337 million in the overall $27.8 billion real-world asset market.

GLXY's stock price rose by more than 4% after the announcement, which is a strong market reaction. The tokenisation comes after Galaxy's partnership with Jump and Multicoin to create a Solana treasury of $1 billion.

GLXY stock price: Source: Google

In related news, Galaxy recently withdrew 6,700 ETH from Coinbase and moved $200 million in USDT to exchanges. Analysts recall a similar move in July that preceded a short-term ETH decline followed by a rally.

As the tokenization for Galaxy's share, GLXY, goes live on the Solana blockchain, Galaxy reaffirms its position as a leader in financial innovation on the blockchain.