Galaxy Digital Debuts Solana GLXY Tokens Backed 1:1 by SEC-Registered Shares
Galaxy Digital has launched “tokenized GLXY,” permitting holders of its SEC-registered Class A typical inventory to transform shares into tokens on Solana by way of Superstate, the agency’s digital switch agent.
In a blog post, Galaxy says this marks the primary time a publicly listed U.S. fairness is offered in native kind on a serious public blockchain.
The tokens should not wrappers: every on-chain GLXY represents an precise share with the identical authorized and financial rights as historically held inventory.
KYC is required by way of Superstate, and solely allowlisted addresses can maintain or obtain the tokens—preserving shareholder information, permitting company actions, and assembly AML obligations.
Galaxy explains that current buyers can “bridge” shares by transferring them from a brokerage to Galaxy’s switch agent after which into Superstate’s on-chain-eligible account, the place one token is minted per share and delivered to the investor’s Solana pockets. The course of additionally works in reverse to return tokens to the normal format.
Galaxy Explains Why Solana and Why Now
Galaxy stated it chosen Solana for its speed, throughput, and rising position as a high-volume spot buying and selling L1. The agency argues that tokenized equities belong on decentralized base layers the place no single operator can management core capabilities like ordering or settlement.
While Galaxy plans to assist Ethereum L1 sooner or later (and can consider L2s), it emphasizes main issuance on L1 to protect unilateral exits and decrease centralized choke factors.
The launch comes throughout a friendlier U.S. coverage backdrop: Galaxy and Superstate say they’re working with the SEC because the fee solicits suggestions on how one can modernize broker-dealer, custody, secondary market, and lending guidelines for blockchain securities.
Trading, AMMs, and the Compliance Perimeter
At launch, tokenized GLXY could be despatched bilaterally between KYC-approved, allowlisted addresses, however AMM/DEX buying and selling isn’t but out there. Galaxy frames automated market makers as autonomous escrow mechanisms that settle deterministically and contends they shouldn’t be regulated as “exchanges” beneath the Exchange Act.
Still, the agency acknowledges that the foundations aren’t settled and can enable AMM connectivity as soon as there’s adequate regulatory readability. Until then, on-chain liquidity could also be restricted, and costs might diverge from GLXY on Nasdaq. The KYC allowlist design additionally mitigates typical MEV considerations by stopping unknown third events from interacting with the token contract.
According to the agency, there’s no dealer monitoring price foundation for on-chain holders at this time, and conventional intermediaries stay largely absent from tokenized securities as a consequence of regulatory uncertainty.
Why It Matters—and What to Watch
Tokenized GLXY is a bridge between book-entry Wall Street and permissionless rails, advancing a mannequin the place fairness possession, recordkeeping, and settlement can dwell on public blockchains with out sacrificing investor protections.
Galaxy argues that after actual, compliant on-chain equities attain key mass, the market will expertise an “Uniswap second”—with sooner, cheaper, fairer buying and selling pulling quantity on-chain.
Key dangers stay: regulatory determinations might power modifications or unwinds; liquidity fragmentation might widen spreads; and operational frictions might persist till processes are standardized.
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