Galaxy Digital announced plans to tokenize its Class A common stock (GLXY) through a partnership with SEC-registered transfer agent Superstate Services. The initiative, formalized in a May agreement, aims to enable blockchain-based trading of GLXY shares and explore DeFi integration for lending and other applications. CEO Mike Novogratz first publicly discussed the tokenization strategy in May, aligning with Superstate's launch of its on-chain securities platform, Opening Bell.
The disclosure follows Galaxy's Q2 2025 results, revealing a 43% quarterly surge in total assets to $9.1 billion and a net income turnaround to $30.7 million from Q1's $295 million loss. However, adjusted gross revenues declined 30% amid volatile market conditions. Notably, Galaxy executed one of Bitcoin's largest-ever trades by facilitating the sale of over 80,000 BTC for a client post-quarter-end.
Despite these gains, GLXY shares fell 9% following the tokenization announcement due to investor concerns about liquidity in the nascent tokenized securities market. Galaxy cautioned that "the market for tokenized securities is nascent" and orderly trading isn't guaranteed. Meanwhile, the firm expanded its Helios data center capacity to 3.5 gigawatts and closed a $175 million venture fund focused on tokenization and blockchain infrastructure investments.