Galaxy Digital to Tokenize Shares Amid $6.3B Asset Decline

- Galaxy Digital to enable blockchain-based trading of its Class A common stock. - Announcement coincides with Q2 report showing a 43% asset drop and a 9% share price decline. Galaxy Digital, led by CEO Mike Novogratz, is taking a pioneering step to tokenize its Class A common stock, which will allow investors to hold and trade the company's shares on the blockchain. On August 5, 2025, The Block reported that the initiative features a partnership with Superstate Services, the appointed transfer agent. Superstate’s platform facilitates the trading of SEC-registered shares on blockchain networks, marking a significant evolution that combines traditional equity markets with emerging technologies. By positioning its tokenized shares for use within decentralized finance (DeFi) applications, Galaxy Digital taps into a growing trend of tokenizing U.S. equities. Some analysts project this move could unlock multi-trillion-dollar opportunities, while advocates point to benefits such as 24/7 trading availability and enhanced access for global investors. However, the endeavor is not without hurdles, as blockchain-based markets currently face challenges, including lower liquidity, trading volume, and transparency compared to traditional platforms like Nasdaq. In addition, companies must navigate complex regulatory compliance as tokenization gains traction. The announcement came alongside Galaxy Digital's mixed second-quarter financial results. While total revenue for the quarter was $8.7 million, remaining flat year-over-year, the company recorded a 30% quarter-over-quarter drop in "Gross Revenues & Gains" and a 43% decline in total assets to $6.3 billion. Despite these setbacks, Galaxy Digital reported a net income turnaround, achieving a $30.7 million profit for Q2 after experiencing losses in both the previous quarter and the same period last year. Following the earnings and tokenization news, Galaxy Digital’s stock price fell by 9%, closing at $26.26.