Galaxy, led by Novogratz, introduces its tokenized GLXY shares on the Solana platform.
Galaxy Digital, a leading crypto-focused financial services firm, has made history by issuing its SEC-registered equity directly on the Solana blockchain. This move marks the first time a public company has taken such a step, bringing transparency, programmability, and composability from the crypto world into the traditional world.
In a partnership with Superstate, Galaxy Digital is exploring how tokenized shares could trade on automated market makers and other platforms, while remaining compliant with SEC rules. The tokenized GLXY shares, representing actual Galaxy Digital shares, are available only to verified investors who have completed know your customer (KYC) verification.
Mike Novogratz, CEO of Galaxy Digital, stated that the goal is to create a tokenized equity that can bring benefits from the crypto world into the traditional world. The Defiant first reported on the news of Galaxy partnering with Superstate to tokenize GLXY stock in early August.
Superstate CEO Robert Leshner described this feature as a "massive upgrade" to public equity infrastructure. Every token transfer on the tokenized GLXY shares automatically updates the registered shareholder list, ensuring transparency and accuracy.
As of press time, data from Solscan shows that the contract has issued over 32,000 tokenized shares so far. Wintermute's hot wallet controls over 90% of the issued tokens. Wintermute is a proprietary technology-driven market maker specializing in digital asset liquidity, providing deep liquidity and flexible trading execution across spot and derivative markets.
Meanwhile, this week, Ondo Finance and Backed Finance announced that their respective tokenized stock products are launching on the Ethereum blockchain. However, both products are not available to U.S. traders. The model being built can potentially scale, not just for Galaxy, but for the market more broadly.
The announcement of this partnership was made on Sept. 3, 2022, by Galaxy Digital. It's important to note that Galaxy Digital has warned that any tokens from other addresses claiming to represent GLXY shares are fraudulent. As of press time, GLXY shares have soared over 5% since markets opened, currently trading around $25.27, according to data from Yahoo Finance.
This development is a significant step forward in the integration of blockchain technology into traditional finance, and it's exciting to see how this model might evolve in the future.
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