Galaxy Digital Plans to Tokenize Shares Amid SEC Talks

• Galaxy Digital is in active talks with the SEC to tokenize its own shares for use in decentralized finance applications.
• Despite recent financial losses, Galaxy continues expanding its infrastructure and positioning itself as a leader in asset tokenization.

Galaxy Digital has officially listed its shares on the Nasdaq on May 16, 2025. Mike Novogratz’s crypto investment company immediately announced a bolder step—they want to turn their own shares into digital tokens. Not just talk, Galaxy is said to have discussed with the US Securities and Exchange Commission (SEC) to explore this possibility, according to Bloomberg.

Just imagine if you could have Galaxy shares in the form of tokens and immediately use them for activities in the DeFi application—borrow money, collateral, and even be traded directly without the hassle of going through a traditional broker.

That’s the concept they are pushing. They want to bridge traditional finance and a more open crypto world. Mike Novogratz said that talks with the SEC are going smoothly, and have even entered a stage that he called “very close” to realization.

Financial Woes Mount, But Galaxy Digital Doubles Down on Its Vision

However, this plan emerged at a time when Galaxy’s financial condition was not so smooth. On May 13, 2025, Galaxy reported a net loss of $295 million for the first quarter of this year.

The main cause was the collapse in digital asset prices, plus a one-time $57 million cost from the closure of their mining operations at the Helios data center campus. But don’t be too quick to assume that the company is dying—Galaxy still has $1.1 billion in cash and stablecoin reserves.

Interestingly, despite the losses, they are actually stepping on the gas. The same day the loss report was released, Galaxy announced that it had completed the reorganization process and changed its status to a Delaware, US-based company.

With this new status, they can report their finances according to American accounting principles (GAAP), which is a major requirement for being listed on the Nasdaq. So, this step is not just about legality, but also a positioning strategy in the US capital market.

Furthermore, Galaxy is also expanding its collaboration with CoreWeave, a cloud computing service provider that specializes in AI and high-performance computing (HPC). Through this new agreement, Galaxy will supply an additional 260 megawatts of power capacity to the Helios campus, and all of this is targeted to be fully operational by 2027.

The total capacity dedicated to AI and HPC at Helios will eventually reach 393 MW. If all goes according to plan, its potential annual revenue could reach $700 million.

Pioneering Tokenization, Galaxy Leans Into Its Blockchain Edge

On the other hand, Galaxy’s move to tokenize stocks is arguably quite bold, although not really new. Several large institutions, such as JPMorgan and BlackRock, are also exploring similar approaches, but they are still being cautious.

Galaxy seems to want to be a pioneer, and they have unique experience—they once used a 316-year-old Stradivarius violin as digital collateral for a blockchain-based loan. So, in terms of technical and vision, they are not new players.

The real-world asset (RWA) tokenization market itself is currently not as big as the crypto market in general. But the chart is rising fast—in the past year alone, its market cap has surged more than 111%, hitting around $22.5 billion.

Given this trend, Galaxy seems to know exactly when to make a move. With its public status on the Nasdaq, clear legal standing in the US, and growing infrastructure capacity, it may be setting a new path that makes financial assets feel more liquid and flexible.