Shares of Galaxy Digital surged 8% in premarket trading on Monday following the launch of GalaxyOne, a new mobile and web platform aimed at retail investors. The app integrates cash, crypto, and equity investing tools, featuring FDIC-insured high-yield cash accounts with a 4% annual percentage yield (APY) for all users and up to 8% APY for accredited investors through the Galaxy Premium Yield product. These yields are supported by Galaxy's institutional lending business, which manages a loan book exceeding $1.1 billion.
GalaxyOne enables trading of digital assets like bitcoin (BTC), ether (ETH), and solana (SOL), alongside over 2,000 U.S. stocks and exchange-traded funds (ETFs) with zero commissions and fractional shares. The platform also offers on-chain transfers for cryptocurrencies and automated reinvestment of earnings to simplify compounding returns. This move places Galaxy in direct competition with Robinhood (HOOD) and Coinbase (COIN), both of which saw approximately 2% stock gains in pre-market trading amid broader market rises.
The launch marks Galaxy's expansion from its institutional focus to consumer finance, leveraging infrastructure from Fierce, a fintech platform acquired for $12.5 million in December 2024. Galaxy, which went public on Nasdaq in May and has seen its stock rise 100% since listing, plans to add features like business accounts, crypto staking, and expanded lending products. CEO Mike Novogratz emphasized, "We've spent years building institutional-quality infrastructure... Now, we're extending that edge to individuals." The timing aligns with bitcoin trading above $120,000 and renewed retail interest in cryptocurrencies.