Galaxy Digital has launched “tokenized GLXY,” allowing holders of its SEC-registered Class A common stock to convert shares into tokens on Solana via Superstate, the firm’s digital transfer agent.
In a blog post, Galaxy says this marks the first time a publicly listed U.S. equity is available in native form on a major public blockchain.
The tokens are not wrappers: each on-chain GLXY represents an actual share with the same legal and economic rights as traditionally held stock.
KYC is required through Superstate, and only allowlisted addresses can hold or receive the tokens—preserving shareholder records, allowing corporate actions, and meeting AML obligations.
Galaxy explains that existing investors can “bridge” shares by moving them from a brokerage to Galaxy’s transfer agent and then into Superstate’s on-chain-eligible account, where one token is minted per share and delivered to the investor’s Solana wallet. The process also works in reverse to return tokens to the traditional format.
Galaxy Explains Why Solana and Why Now
Galaxy said it selected Solana for its speed, throughput, and growing role as a high-volume spot trading L1. The firm argues that tokenized equities belong on decentralized base layers where no single operator can control core functions like ordering or settlement.
While Galaxy plans to support Ethereum L1 in the future (and will evaluate L2s), it emphasizes primary issuance on L1 to preserve unilateral exits and minimize centralized choke points.
The launch comes during a friendlier U.S. policy backdrop: Galaxy and Superstate say they are working with the SEC as the commission solicits feedback on how to modernize broker-dealer, custody, secondary market, and lending rules for blockchain securities.
Trading, AMMs, and the Compliance Perimeter
At launch, tokenized GLXY can be sent bilaterally between KYC-approved, allowlisted addresses, but AMM/DEX trading is not yet available. Galaxy frames automated market makers as autonomous escrow mechanisms that settle deterministically and contends they should not be regulated as “exchanges” under the Exchange Act.
Still, the firm acknowledges that the rules aren’t settled and will allow AMM connectivity once there is sufficient regulatory clarity. Until then, on-chain liquidity may be limited, and prices could diverge from GLXY on Nasdaq. The KYC allowlist design also mitigates typical MEV concerns by preventing unknown third parties from interacting with the token contract.
According to the firm, there’s no broker tracking cost basis for on-chain holders today, and traditional intermediaries remain largely absent from tokenized securities due to regulatory uncertainty.
Why It Matters—and What to Watch
Tokenized GLXY is a bridge between book-entry Wall Street and permissionless rails, advancing a model where equity ownership, recordkeeping, and settlement can live on public blockchains without sacrificing investor protections.
Galaxy argues that once real, compliant on-chain equities reach key mass, the market will experience an “Uniswap moment”—with faster, cheaper, fairer trading pulling volume on-chain.
Key risks remain: regulatory determinations could force changes or unwinds; liquidity fragmentation could widen spreads; and operational frictions may persist until processes are standardized.
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